What is a direct consolidation loan? February 24, 2020 22:42 Updated Follow A Direct Consolidation Loan is a government program that allows you to combine multiple federal education loans into a single loan. The resulting interest rate is a weighted average of your prior loan rates. Refer here for more information. Related articles What is the difference between consolidation and refinancing? What terms do you offer? I Forgot my Password. What do I do? Does Sofi offer any special products for first time home buyers? Can I make wire transfers with SoFi Checking and Savings?