Observations are provided on the current state of student financial assistance and governance of higher education in Louisiana, and how these two areas affect broader issues in higher education. Briefly discussed are the history of student aid in the state; changes in tuition and fees; coordination of student aid programs and charges; allocation of resources in relation to student need; the issues of student access and college choice; criteria for awards, including merit; funding by type of institution and program; financial aid in relation to institutional costs; and retention. It is concluded that if access to higher education is seen as the principal reason for financial aid programs, the state needs to provide less indirect aid and more aid in the form of direct awards to students. Historic and present systems of coordination and governance are outlined; budget and appropriations processes are examined. It is noted that Louisiana's higher education governance structure is well established in the state constitution. Because the state is currently committed to maintaining all institutions and justifiable programs, the issues facing the Board of Regents are seen as those of management and finance rather than of academic excellence. It is predicted that institutions will encounter conflicting constraints in the governance structure that may permanently damage the educational process in the state unless the intellectual independence of higher education is assured by government agencies. Some data tables are included. (MSE)