Backdating of tradelines with direct consolidation (Nelnet)?

[FromThereToHere]

I have eight Direct Loans serviced by Nelnet. Since the loans were disbursed prior to 2007, they are all variable-rate (currently 2.35%). I started the Direct consolidation process so that I can lock in this rate.

I am concerned about the potential affect that consolidation will have on my average age of accounts. Does anyone know whether the tradelines for the new consolidation loans will be backdated? Or (more likely) will all of my existing accounts be closed and the new consolidation loans opened as new tradelines? If the latter, would you guys advise that I remove one of my original loans (mostly paid off, so the interest hit will be slight) from consolidation so that I can retain an old open tradeline?

Thanks for any advice.

[Rikku]

Unless the process has changed, consolidation means that your original loans are paid off with the new consolidation loan - so yes, it will be a new TL.

Whether or not you leave one loan out of the consolidation is up to you, but the closed TLs will remain on your CR for ten years and will continue to factor into your AAoA. Since the loan that you plan to remove from the consolidation loan is mostly paid off anyway, leaving it open for a few more months won't make much of a difference. Just treat your CR well for the next ten years and it won't matter much when the consolidated SLs fall off. I would not keep a SL around for credit reporting reasons if I could pay it off - even if it's your oldest account.