Very long-defaulted Student Loans the US Navy didn't pay off when I enlisted

I enlisted in the US Navy when I was 19 back in 2006. When I enlisted, I had two options: Enlistment Bonus or Student Loan Repayment Program. I picked the Student Loan option as I owned like $7,000-$8,000, and my enlistment bonus was less than that... so yea, easy choice.

As per my enlistment contract (which I still have), the US Navy was suppose to pay off all of my student loans over a one year period, after i was in for one year. They were also suppose to take over the loans, defer them for the first year, until they started making payments.

Well I got out in 2011, with not a single payment made. Sallie Mae had some huge financial issues, and I ended up not having to pay them like $3k. But I still owe my school ~$4k from my federal loans. They have never had a single payment done to them as I was told if I make any payments, the Navy will not reimburse me, etc.. and have been told time and time again, keep deferring until the Navy pays them off.

Well now I'm 29, with very shit credit because of this. The Navy still hasn't made a single payment and now that I'm out I've been informed it's whatever now, they aren't going to do anything. I have a contract that says they were suppose to, but the contract also keeps me from suing the Navy for anything.

What do I do? Do I just accept that the US Navy broke the contract with me, and pay it off myself... or what? I can't get a car loan, well really any loan now because of my credit. The Navy has completely destroyed my financial life because of this. I 'm not sure what my next step should be.