<div><div class="yn-story-content">
                <p><strong>Who can get Stafford loans?</strong></p>
                <p>Graduate students who are U.S. citizens or legal permanent residents, haven't defaulted on other federal student loans, and attend school at least half time are eligible</p>
                <p><strong>How much can I borrow from the Stafford program? </strong></p>
                <p>Graduate students can borrow up to $20,5000 for each nine-month academic year. Those attending 12-month programs can borrow up to $26,667. But the government won't make any additional Stafford loans to students who hit the cumulative graduate Stafford debt cap of $138,500.</p>
                <p>Medical students have higher maximums. They can borrow up to $40,500 a year  and up to $224,000 in total through the Stafford program.</p>
                <p><strong>How much do Stafford loans cost?</strong></p>
                <p>Staffords charge a maximum fixed rate of 6.8 percent, plus up-front fees of up to 1 percent of the amount borrowed, for a total annual percentage rate of 7.1 percent.</p>
                <p>Students who qualify as "needy" in the 2011 academic year can get "subsidized" Stafford loans of up to $8,500 that don't charge any interest while they are in school. The subsidized Stafford loan program for graduates has been targeted for cuts, however, and may be eliminated in 2012.</p>
                <p><strong>How do I get a Stafford loan?</strong></p>
                <p>You must fill out a <a href="http://us.rd.yahoo.com/dailynews/usnews/ts_usnews/storytext/graduateschoolstaffordloanfaqs/40695241/SIG=10qa3n5vh/*http://www.fafsa.ed.gov/">FAFSA</a>.</p>
                <p>[Find out how a <a href="http://us.rd.yahoo.com/dailynews/usnews/ts_usnews/storytext/graduateschoolstaffordloanfaqs/40695241/SIG=134sjhgm7/*http://www.usnews.com/education/blogs/college-cash-101/2011/01/04/fafsa-web-videos-are-fun-helpful">sock puppet can help you fill out the FAFSA</a>.]</p>
                <p><strong>Does every grad student get approved for a Stafford loan?</strong></p>
                <p>No. Students who have defaulted on other college loans, who are not U.S. citizens, or who are attending school only part time do not qualify.</p>
                <p><strong>What if I have bad credit?</strong></p>
                <p>You can get a Stafford loan if you've defaulted on a mortgage, car, credit card, or medical bills. The federal government does not do a regular credit check for Stafford loans. It only rejects applicants who have defaulted on other federal education loans.</p>
                <p><strong>What if I need more money than the Stafford maximums?</strong></p>
                <p>You can borrow up to your full cost of attendance from the federal Graduate PLUS program. But those have higher fees and interest and are not awarded to students with bad credit.</p>
                <p>[Read <a href="http://us.rd.yahoo.com/dailynews/usnews/ts_usnews/storytext/graduateschoolstaffordloanfaqs/40695241/SIG=13vh9ddcp/*http://www.usnews.com/education/best-graduate-schools/top-graduate-schools/paying/articles/2011/03/16/graduate-plus-loan-faqs">FAQs about Grad PLUS loans</a>.]
</p><p>
<strong>How is the credit crunch affecting Stafford loans?</strong>
</p><p>
Stafford loans are funded and made entirely by the federal government. So they remain available to all qualified students.
</p><p>
<strong>Are Stafford loan payments tax deductible?</strong>
</p><p>
It depends on your income when you start repaying. Generally, for a single person, education loan interest is deductible only if you earn less than $70,000.
</p><p>
<strong>When do I have to start repaying my Stafford loan?</strong>
</p><p>
The first bill comes due six months after you've left school, whether that's after graduation or after you've dropped out.
</p><p>
<strong>What happens if I lose my job or get into other financial trouble?</strong>
</p><p>
Call the Department of Education and sign up for <a href="http://us.rd.yahoo.com/dailynews/usnews/ts_usnews/storytext/graduateschoolstaffordloanfaqs/40695241/SIG=13m6e2afd/*http://www.usnews.com/education/blogs/college-cash-101/2009/07/01/pay-off-your-student-loan-with-help-from-uncle-sam">Income-Based Repayment</a>. If that doesn't bring your payments down to an affordable level, you can also ask for either "deferral" or "forbearance" of your payments. The <a href="http://us.rd.yahoo.com/dailynews/usnews/ts_usnews/storytext/graduateschoolstaffordloanfaqs/40695241/SIG=11f0rc3ta/*http://www.studentloanborrowerassistance.org/">National Consumer Law Center</a> also has some good advice.
</p><p>
<strong>What are the advantages of a Stafford loan?</strong>
</p><p>
Stafford loans have a comparatively low fixed interest rate, so the size of your payment won't increase if interest rates rise. Through <a href="http://us.rd.yahoo.com/dailynews/usnews/ts_usnews/storytext/graduateschoolstaffordloanfaqs/40695241/SIG=13m846lnv/*http://www.usnews.com/education/blogs/student-loan-ranger/2010/12/15/manage-student-loans-via-income-based-repayment">Income-Based Repayment</a>, Stafford borrowers can ask to have their payments capped at 15 percent of their disposable income. And public servants who make 10 years worth of income-based repayments can have their remaining Stafford debts forgiven.
</p><p>
[Learn the <a href="http://us.rd.yahoo.com/dailynews/usnews/ts_usnews/storytext/graduateschoolstaffordloanfaqs/40695241/SIG=14h7ktm0q/*http://www.usnews.com/education/best-colleges/paying-for-college/student-loan/articles/2010/05/10/11-steps-to-relief-from-federal-student-loans">11 steps to relief from student loans</a>.]
</p><p>
<strong>What are the downsides of Stafford loans?</strong>
</p><p>
Unlike credit card debt and mortgages, which can be canceled if you file for bankruptcy, education loans of all types--whether federal or private--must be paid. Most bankruptcy courts will not cancel them unless your situation is extremely dire.
</p><p>
<i>Searching for a grad school? Get our <a href="http://us.rd.yahoo.com/dailynews/usnews/ts_usnews/storytext/graduateschoolstaffordloanfaqs/40695241/SIG=11sncaqlh/*http://www.usnews.com/usnews/store/grad_school_compass.htm">complete rankings</a> of Best Graduate Schools.</i></p>
            </div></div><p><strong>Read more:</strong> <a class="rssreadon" rel="external" title="Graduate School Stafford Loan FAQs   (U.S. News   World Report)" href="http://us.rd.yahoo.com/dailynews/rss/education/*http%3A//news.yahoo.com/s/usnews/20110316/ts_usnews/graduateschoolstaffordloanfaqs" target="_blank">http://us.rd.yahoo.com/dailynews/rss/education/*http%3A//news.yahoo.com/s/usnews/20110316/ts_usnews/graduateschoolstaffordloanfaqs</a></p>