Issues concerning the reauthorization of the Higher Education Act of 1965 are voiced by representatives from various states, based on hearings held in New York City. It is recommended that the Pell Grant Program continue to be the cornerstone program of federal financial aid to postsecondary students. A large percentage of Pell grant recipients are minorities and women. Students at the City University of New York (CUNY) receive more Pell Grant dollars per student than any other postsecondary education institution, and more Black and Hispanic seniors receive Supplemental Educational Opportunity Grants than White students. CUNY's University Student Senate feels it would be unwise to increase funding for the Work Study Program at the expense of other aid programs. One-third of the students attending California State University depend on scholarships, grants, loans, and work to attend college. Of 91,000 financial aid recipients, 45,000 depend on Pell Grants and 43,000 rely on the Guaranteed Student Loan Program. Testimony from a Barnard College student addresses the proposed $8,000 ceiling on financial aid and notes that the average amount required to attend private colleges is estimated at $11,600 for 1986. Views of representatives from additional states and institutions are included. (SW)