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 are SoFi's Personal Loan term options? How can I have the minimum monthly payments of my refinance recalculated? Is it possible to refinance both federal and private student loans? How will my Personal Loan funds be disbursed? Is there a way to refinance my SoFi student loans back to federal loans?