Congressional debate over modification and reform of Title IV, Student Assistance of the Higher Education Act of 1965 is discussed. The 1965 Congressional hearings on the 1965 Act, up for reauthorization in September 1979, are expected to continue into 1980 before Congress finally approves a bill. Title IV implements the federal philosophy that no student should be denied a higher education because of financial need. Within this Title, two programs that will be significantly altered are the Basic Educational Opportunity Grants program and the student loan programs, including the National Direct Student Loan program (NSDL) and the Guaranteed Student Loan program (GSL). Problems that have developed in these programs and current proposals for reforming them are discussed. The growing debate over the student-aid "packaging" concept as a means of achieving equitable aid distribution is also addressed. A bibliography and titles of the Higher Education Act as they appear in the proposed House bill are also included. (SW)