Proposed budget cuts by the Reagan Administration that will directly affect the financial aid programs at the University of Delaware are examined, along with the anticipated impacts of the cuts. The programs specifically slated for reduction in both funds and the number of students who will be eligible to participate in 1981-82 include the Guaranteed Student Loan (GSL) Program, the Pell/Basic Educational Opportunity Grant program, and the Social Security Student Benefits Program. In addition, reduction are anticipated in the funds available through the National Direct Student Loan, Supplemental Educational Opportunity Grant, College Work Study, and some reciprocal state grant programs. It is projected that if the interest rate subsidy on the GSL program is eliminated, the university can anticipate a 20 percent reduction in student participation in the program. If the needs-based approach to the GSL program is adopted, it is suggested that lenders would be dissuaded from actively participating in the program and student participation would be reduced by 40 percent. A 35 percent reduction in the amount of funds available to students under the Pell Grant program is anticipated, as is redefinition of student eligibility. The proposal to withdraw the Student Loan Marketing Association's (Sallied Mae) access to borrow from the federal government may greatly diminish its ability to serve as a secondary market and warehousing mechanism for the Guaranteed Student Loan lenders. Phasing out of the Social Security Student Benefit program would result in approximately 1,000 University of Delaware students losing about $50,000 per month for the 1981-82 academic year. Ten steps being taken by the university in light of these proposed reductions are outlined. (SW)