Actually, you Direct Consolidation Loan will be eligible for benefits such as deferment, forbearance, and possibily loan forgiveness and you could also be eligible for more federal student aid.
Will my wage garnishments from my loan holder last under loan rehabilitation?
Yes, wage garnishments or any involuntary payments could continue even after you have been making payments under the loan rehabilitation agreement but they will not be counted toward your mandatory nine payments.
What will happen if I rehabilitate a defaulted loan?