The administrative costs of the student financial aid delivery process at postsecondary institutions were analyzed. After reviewing the literature and interviewing selected experts, 1982 cost data at nine institutions were studied: three public and two private colleges, two community colleges, and two proprietary institutions. Costs were classified into six functions: outreach, application processing, and counseling; needs analysis and eligibility determination; packaging and awarding activities; reporting, regulatory reviews, and program audits; accounting and collections; and other administrative functions. Based on the data analysis and interview findings, observations were made regarding functions and staffing patterns, delivery system costs, and management perspectives of financial aid officers. Full-time equivalent staffing patterns, the use of student labor in the campus financial aid process, and staffing ratios were examined, along with personnel costs, other operating costs, costs by function, costs by program, and administrative cost allowance. The cost allocation methodology is described and information is presented on the operating characteristics of the institutions. Finally a summary of selected literature and a list of sources are included. (SW)