Subsidized Stafford Loan This is a need-based federal student loan. While the student is in school, interest is paid by the federal government on the student's behalf. There is a limit on the maximum period of time (measured in academic years) that a new student borrower can receive Direct Subsidized Loans. In general, students may not receive Direct Subsidized Loans for more than 150% of the published length of their program. For more information regarding this 150% limitation on Direct Subsidized Loans please click here.