A model of student persistence that considers the role of student finances and student financial aid was investigated in 1980, with a focus on federal campus-based aid. Linear Structural Relations (LISREL), a more versatile technique than traditional path analysis, accounted for 42 percent of the variance in the persistence of 343 new freshmen financial aid recipients at a major urban university in the Southwest. The results indicate that financial need, student residency status, and noncampus-based loans and grants have direct effects on new freshman persistence regardless of the type or amount of campus-based aid awarded. The direct effect of each federal campus-based program on persistence was significant and positive. The effect of Supplemental Educational Opportunity Grants on student persistence was about half that of National Direct Student Loans and the College Work Study program. The model accounted for about 23 percent of the variance in academic performance; high school rank had the largest direct effect on cumulative grade point average. Implications for administrators and researchers are discussed. (Author/SW)