Observation: Every $\aleph_1$-directed colimit $\varinjlim_i X_i$ of finite sets is finite.
Proof: Because the $X_i$'s are finite, the Mittag-Leffler condition holds, so by passing to the diagram of essential images, we may assume that the transition maps are injective. Therefore the cardinalities of the $X_i$ must be bounded (here is where we use $\aleph_1$-directednes), and by passing to a cofinal sequence we may assume that the cardinalities are constant. By the pigeonhole principle, all the transition maps are bijections. So the colimit is given by evaluation at any of its terms, and is finite.
Question: Is every $\aleph_1$-directed colimit of finitely-generated abelian groups finitely-generated? How about not-necessarily-abelian groups?
More generally, let $\mathcal C$ be a locally finitely-presentable category. Is every $\aleph_1$-directed colimit of finitely-presentable objects finitely-presentable?