Reauthorization of the Higher Education Act of 1965 is considered in this report of a hearing. Factors that affect students' financing of their college studies in Washington are addressed, including the tax structure, tuition, and the state's financial system. Recommendations for the legislation include: fund student financial aid at levels that will ensure reasonable access and that are sensitive to upward adjustments in costs; examine the mix of federal financial aid (loans, grants, and work-study); increase grant assistance for high-need undergraduates and provide grant assistance to high-need graduate students to avoid excessive debt burdens caused by the present imbalance of loan and work programs over grants; reduce the cost of the Guaranteed Student Loan program without penalizing students who benefit from the program; do not consolidate the Title IV program into one grant (one work and one loan program); provide administrative allowances for each major Title IV program to ensure proper management and compliance; and evaluate the aid delivery system to streamline the process for students and reduce the administrative burden on colleges. Included are four pages of the text of H.R. 2805, the bill to amend the Higher Education Act. (SW)