Information is provided on the Student Aid Report (SAR), which is used to determine student eligibility for Pell Grants. Four to six weeks after a student submits a 1986-87 "Application for Federal Student Aid" or one of the non-federal applications, the student will receive the SAR. The student's eligibility status determines which of the three different parts of the SAR the student receives. An instruction section explains the three parts: (1) the information summary, (2) the Information Review Form, and (3) the Payment Form that the school uses in calculating the student's award. Included are a form that students can use to make corrections to the SAR. Information is also provided on the assumptions that were used to figure the Student Aid Index. In addition, this guide explains the verification process that will be used with a percentage of 1986-1987 applicants. Students selected for verification will receive a worksheet that the student and the school financial aid administrator can complete and check against the information on the student's SAR. The guide provides cover letters, forms, and instructions that are sent to eligible and ineligible students, students selected for verification, rejected students, and students with a void application. (SW)