Hearings on reauthorization of the Higher Education Act of 1965 focus on the needs analysis system for student aid programs. One proposal recommends restructuring the Pell Grant Program to target its support on low-income students and to make it more sensitive to the costs of different types of colleges. Recommendations include: implementing a single needs analysis system for federal student aid programs; adopting a master calendar for the delivery of federal student aid to insure adequate notification and timely delivery of aid; limiting the number of years that a student may receive a grant to assure students are making satisfactory progress toward completing their studies, and redefining what constitutes independent students so that independent students who have dependents are treated fairly. It is noted that an increasing number of college students from farm families are found ineligible for Pell Grants because the needs analysis system does not acknowledge that unearned income is already obligated to retiring debt or meeting tax liability. To address this problem, H.R. 2481 would amend the Higher Education Act to provide fair treatment in computing family contributions in college student aid for students affected by the sale or forfeiture of family farm assets. Supplementary materials include reports of national associations. (SW)