Issues concerning federally sponsored student financial aid programs are discussed, and an overview is presented on the six student assistance programs included within Title IV of the Higher Education Act of 1965 as amended, plus veterans benefits under the G.I. Bill and education benefits under Social Security (OASDI). Information is presented on student eligibility, award levels in 1977-78, application process, award process, beneficiaries, and institutions eligible or participating in each of the six Title IV programs. Problems that divide the federal government and higher education institutions include the absence of any federal student aid strategy. There is a need for guidance in defining the respective federal and states roles in student financial aid. The large number of statutory authorities affecting postsecondary education and student assistance makes the situation unnecessarily complex. A federal strategy is necessary to promote good public policy at the state level, where pricing and aid strategies are dependent upon factors such as the ratio of private and public colleges. Most of the specific problems associated with federal student assistance, from unclear legislation to difficult regulations, ultimately follow from the lack of a federal strategy. The role of regulation, the allocation system of funds to states, and the tripartite application process are considered. Implications for the future of student financial aid are discussed. (SW)