The College Scholarship Service (CSS) was established to develop a standardized need analysis system and collateral services that had to provide: (1) a standard form for the collection of data pertaining to family income, assests and other family circumstances that might affect parental ability to pay for higher education; (2) a rationale for analysis of the data; (3) centralized processing and distribution of the information; and (4) agreement among users of the CSS services to policies for the distribution of funds to students on the basis of actual need rather than competitive bidding. A panel was established in 1968 to review the CSS system within the current frame of parental responsibility, and this report presents the panel's evaluations and recommendations for change. It deals with the following topics: (1) college admissions and financial aid policies as revealed by institutional practices; (2) financial aid attitudes and concerns of users and problems of special student populations; (3) adequacy of CSS need analysis system for low income and minority students; (4) technical changes to improve equity in determination of parental contributions; and (5) the packaging of financial aid. A report on student attitudes toward student aid and the questionnaire are appended. (AF)