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 How can I have the minimum monthly payments of my refinance recalculated? What are SoFi's Personal Loan term options? 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?