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 terms do you offer? What is the difference between consolidation and refinancing? Does Sofi offer any special products for first time home buyers? Can I make wire transfers with SoFi Checking and Savings? How much time do I have to confirm my order?