If you miss one student loan payment, even by a day, your loan will be considered delinquent. If you don’t make a payment on a federal loan for 270 days, your loan is considered in default.
But for private lenders, that default could be far less time — even one missed payment, depending on the lender.
Also, opening a new account will lower your average account age, which makes up about 7% of your credit score.
Opening this new consolidated loan means you’re now “closing” those pre-existing loans.
So even though it could lower your score initially, keep in mind that paying off a student loan earlier means you’ll pay less in interest overall.