The General Accounting Office reviewed 18 relevant studies and analyzed existing data from the High School and Beyond Survey of 58,728 students to determine students' and parents' knowledge of federal financial aid for postsecondary education. It was found that students and parents knew very little about financial aid and held erroneous views about financial aid and school costs. Additionally, there was found to be a relation between a family's income and educational level and its level of awareness of federal financial aid: low-income families knew more about Pell Grants and high-income families knew more about loans. Higher educational institutions were found to be the primary source of information about financial aid for most students and parents, followed by informal sources such as family and friends. In addition, studies showed that students from families with knowledge of financial aid at the time the students were in high school were far more likely to apply for aid. Academic ability, high school grades, family income, and motivation to continue education were seen as more highly related to postsecondary attendance than was knowledge of financial aid. Prior awareness of the availability of financial aid can be part of a chain of influences leading to completion of additional schooling. Contains 19 references. (GLR)