The Advisory Committee on Student Financial Assistance held a hearing in California on the administration of federal student financial aid programs in higher education with emphasis on the simplification of need analysis and the delivery system, and outreach and early awareness programs. Testimony was offered by individuals from national and regional financial aid administrators groups, directors of financial aid offices, directors of federal outreach programs, financial aid officers and representatives of other national outreach programs. The testimony presented gave near unanimous support for simplification of need analysis. Comments were primarily directed toward those legislative changes advanced under a proposed Educational Excellence Act. Participants argued for automatic independent status for graduate and married students. Those who spoke about assets and home equity were not in favor of eliminating either from need analysis. Categorical exemptions were recommended and discussed. Eight specific recommendations on need analysis were offered. Participants discussed outreach and early awareness efforts with many reporting that current efforts do not reach those who need them most, that students must know and believe that financial assistance will be available at college, and that parents should be included in outreach effort goals. (JB)