Hearings on reauthorization of the Higher Education Act of 1965 that were held in Gettysburg, Pennsylvania, in 1985 are presented. The largest and most important programs contained in the Higher Education Act provide grants, loans, work opportunities, and special services to students with a demonstrated need for federal financial aid. The Act also contains programs to assist college libraries, international education, and cooperative education, as well as the Fund for the Improvement of Postsecondary Education. It is noted that higher education is Pennsylvania's ninth largest employer, a major consumer of goods and services, and a source of research and development. It is suggested that both availability of federal student aid and consistency in eligibility criteria and program components are important for decision-making regarding college attendance. Additional concerns include: the balance between grant and loan programs and impacts on private colleges, the need for additional grants for graduate students, instructional and research equipment needs in higher education, a proposal to eliminate the federal administrative cost allowance payments to guarantee agencies who administer the Guaranteed Student Loan program, and the changing role of Sallie Mae, a profit-making corporation that makes student loans available. (SW)