The issues, problems, and prospects of federal student aid are addressed in three papers and an introduction. In the introduction, David W. Breneman considers implications of the Middle Income Student Assistance Act and developments that raise questions about the foundation of student aid programs. In "Why Strains on Need-Based Financial Aid Are Increasing and Some Options for Relieving Them," Kenneth M. Deitch attempts to clarify some features of the overall system of pricing in higher education, of which the financial aid system is a crucial ingredient. It is suggested that having two major systems of need analysis operating at the same time is a source of current problems. In "How Good Is the Student Financial Aid System?" Martin A. Kramer considers the student aid system today, the vulnerability of aid programs, and four possible outcomes for student financial aid if financial conditions worsen. In "Premises of Student Assistance: It Isn't Time for a New Look," Marshall S. Smith suggests that the present federal system of student assistance is in pretty good shape and that there is enough student assistance in the aggregate to meet goals of student access. Strategies that may be used for creating a more equitable distribution system at the individual and institutional level are suggested. (SW)