If you consolidate, the negative history for the old loan will remain on your report until it gets too old, but your report will show you as current on the new consolidation loan. (studentloanborrowerassistance.org)
Loan consolidation allows you to pay off one or more federal student loans with a new consolidation loan. (studentaid.ed.gov)
The consolidation loan is treated as a fixed rate loan within the weighted average interest rate formula used to calculate the interest rate on the new consolidation loan. (finaid.org)