A 1979 College Board Study of the State Student Incentive Grant (SSIG) program is updated. SSIG had two original purposes: encouraging the creation and the expansion of state student grant programs. By 1979 all states had created programs of need-based grants for undergraduates, but increasing state spending was less successful. In 1980 Congress added a new maintenance of effort requirement to SSIG that might renew the program. The following questions are addressed: (1) What has happened to state expenditures on student grants since 1979? (2) Do any states have federal incentives to increase their funding, given declining appropriations in SSIG? (3) How important is federal funding in maintaining state appropriations in times of economic distress? (4) Have states continued to use all of their SSIG allotments or have some returned portions to the federal government rather than appropriate adequate matching money? (5) Have "overmatched" states kept up their outlays on student grants, even though they could cut back without losing federal funds, or have they cut back on their own efforts? (6) If federal SSIG expenditures were eliminated, how many students might be affected? (7) If SSIG were reduced or abolished, what would the impact be on state grant programs? (SW)