These students will have a choice to obtain either a Federal Direct Graduate PLUS Loan or a credit-based private education loan. Both of these loans have a credit review requirement; however, the Direct Graduate PLUS Loan has a current fixed 7.21% interest rate, while private loans could have a variable or fixed rate. The repayment options for private loans are the same as for the federal loans, but the interest rate is assigned based on the borrower’s FICO (Fair Isaac Corporation) score. Oftentimes, students have not acquired enough credit to establish a viable credit history, and the lender may ask for a co-borrower. The loan funds are disbursed through the University and not directly to the student.