Question about the Military Loan Repayment program?

I have some loans with Sallie Mae. I just talked to them today and they said that they no longer consolidate loans and I'd have to go through a separate loan company who would buy my loans from Sallie Mae and consolidate them to get that done. My recruiters told me that it's best to get my loans consolidated in order to get the maximum benefits from the Loan Repayment Program which I have in my contract. Does anyone know if the military has any programs where they'd buy your loans and consolidate them? My credit is pretty terrible so I don't think I'd have much luck finding a private loan company willing to do that on my own. Any suggestions?