Postsecondary student financing policies in the State of Washington are examined in this report that focuses on the interaction between federal and state student aid programs. The increasing importance of this type of investigation is noted in view of the recent growth in federal student aid. Financial aid available to students in Washington State is profiled and ways in which state policies have and have not been designed to coordinate with federal programs are described. The relationship between the 1977 decision by Washington State to raise tuition in public institutions and the accompanying state decisions regarding the focus and funding of student aid are analyzed. Examined are: the Tuition Waiver Program, the State Need-Grant Program, and the State Work-Study Program. Constitutional considerations on the range and flexibility of state programs and the growth in aid programs are discussed as well as institutional distribution of federal and state aid. The effects of student aid on tuition are discussed and it is suggested that the structure and size of the federal commitment to student aid has not stimulated tuition increases in public institutions. The federal and state aid programs in Washington appear to operate virtually independent of each other. Future issues concerning student aid, distribution of student aid, and effects of newly enacted federal policies (especially changes in the Basic Educational Opportunity Grants Program) are also assessed. (SF)