This report presents the findings of an investigation into the major issues and possible responses to recent changes in college student financial aid. An executive summary reports that student financial aid is of urgent concern to institutions, policymakers and the nation and that a long term dialogue on the role, impact, and importance of financial aid is called for. An opening section describes the changes that have taken place during the past 25 years, some that are cumulative, others that were triggered by the Higher Education Act Reauthorization of 1992. Part 1 describes serious challenges that arise from these changes: (1) challenges to equity, access, and diversity; (2) implications for institutions' financial health; and (3) the risks and liabilities for institutions that participate in federal aid programs. Part 2 suggests strategies for effective leadership including a strong recommendation that presidents, trustees, and others: first, ensure that institutional financial aid policies and practices are in keeping with the overall institutional mission and policies and are not in violation of federal or state strictures; second, ensure that the integrity and quality of the financial aid program is a top priority through the application of the highest quality standards and sound policies and procedures; and, third, become effective advocates for student financial aid inside and outside the institution. (JB)