The first of two reports to the Board of Governors of the California Community Colleges on student aid and its administration, this report describes major trends in financial aid over the past decade; characteristics of student aid recipients and financial aid officers; and operating costs, staffing, and workload. Following background information and a brief introduction to the nature of financial assistance, part 1 explores major trends and issues in financial aid, revealing: (1) an increase in student indebtedness as loans rather than grants become the new dominant source of current financial assistance; (2) a substantial rise in district and state contributions to student aid; (3) evidence that only 60% of student aid applicants receive assistance; and (4) the disproportionate impact of student aid recipients in generating average daily attendance. This section provides historical comparisons of California community college financial assistance, discusses the implications of trends in financial aid for low-income students, highlights the growth of Guaranteed Student Loans (GSL's), and discusses the decline of need-based aid programs. Part 2 examines selected characteristics of student aid recipients and financial aid administrators. Operating costs, staff, and workload are considered in part 3. Finally, part 4 discusses the implications of study findings. A description of five major federal aid programs and a list of financial aid regional representatives are appended. (LAL)