Trends in student financial aid in the State of Florida since 1968 and the changing relationships between higher education and government in Florida are examined. The administration of student financial aid programs was centralized in 1969, and in 1970 the old incentive programs such as teacher and nursing scholarship were phased out, the Regents Scholarship program was phased out, the Florida Insured Student Loan program was expanded, and a new Florida Student Assistance Grant program was created. The change in federal policy in 1976 regarding federal guarantees of state direct loan programs resulted in the termination of the Florida Insured Student Loan program. The new Guaranteed Student Loan makes it possible for students to borrow directly from participating lenders. Students in the State University System may be eligible for other types of financial aid and benefits. Governance in Florida before and after 1968, and the roles of the Governor, the Legislature, and the Executive Branch in higher education are reviewed. The budget process, centralization of the State University system, and developments in both the public and private sectors are considered. (SW)