Garnishment/Rehab/Consolidation options

In August, I received a letter (sent to my current address-- not forwarded) from a company I had never heard of saying that I had student loans I had never paid on. I called the company and let them know that I did have two sets of student loans, but both were being paid on. Before I could ask questions, he asked me my current information (address, phone, work info.)The guy was nasty and accused me of making up addresses and phone numbers (he had old ones of each in his file). Eventually, I figured it was a scam and hung up on the guy.

After I hung up, I carefully read the information in the letter. One of the pages was a request for review. One of the paragraphs on the request for review page said, "IMPORTANT: You should request and review copies of the records evidencing your loan before you complete this statement. See the Notice of Proposed Treasury Offset for instructions on how to request these records." I followed those instructions and sent my written request for the records, given that I thought the information was inaccurate and I was already paying on the loans in question. I sent the request for information well within the required timeframe. To date, I have not gotten a reply.

In the meantime, I found the website that has all of the information about my loans and discovered that due to a combination of extreme disorganization on my part and frequent moves, I did in fact have two loans that weren't part of either of the loans I was paying on. The next day, my employer showed me the paperwork indicating my wages were about to be garnished.

I applied for a consolidation loan, which is in "cert status" at this time. Am I even eligible for one? The CA rep I spoke to today (different guy than the one who said I was a liar) said I "probably wouldn't be eligible" for consolidation since it's reached the AWG status. Is he right? I asked if I could rehab the loan, and he said if I paid an additional $75 a month for 11 months on top of the garnishment, they would stop the garnishment. Someone else at my work had a garnishment (on which they had already made a few payments via the garnishment), and when she called her CA, they suspended the garnishment while she did the rehab-- she's not doing both. When I mentioned this, my CA said it was definitely both.

If I am not eligible for a consolidation because of the AWG, do I have any rights given the fact that I requested the information in a timely fashion? I want to do what is right, but I am already paying $231 a month in loans and the garnishment will add about $300 a month to that. If I need to, I will pay the $75 on top of the $300, but I would really like to avoid that if possible. Thanks for any help anyone can give!