The estimated fiscal impact of four federal cost reduction options for the Guaranteed Student Loan (GSL) Program was studied. Income and other financial strength data on current New York State recipients of guaranteed loans during the 1981-82 academic year were collected in order to assess the impact of the cost reduction proposals. Two major findings of the survey were that the GSL program serves students from a wide range of income levels, and that the financial dependency status of the typical loan recipient is the same for all institutional sectors. Findings regarding family size and structure, which affect the calculation of financial need and loan eligibility, include: the average financially dependent (two parent) loan recipient comes from a family of 4.7 members, with 1.7 members in college; and family size and the number of family members in college increase as income increases. A computer model assessed the impact of proposed policy options, using the income profiles and actual loan approval volumes for the 1981-82 academic year. A simulation of the GSL recipient population was constructed, and need analysis formulas were applied to the simulation to assess loss of loan eligibility by such characteristics as income level, financial dependency, institutional sector, and level of study. Each of the following four policy options was found to reduce the total dollar value of loans available to students: need analysis requirement for students with incomes over $30,000, need analysis requirement for all students, denial of loan eligibility for students with incomes over $40,000, and need analysis requirement for all students and denial of graduate loans. A questionnaire is appended. (SW)