This report examines student financial assistance schemes in Australia in terms of their effectiveness and administration; particular reference is made to the findings of the Auditor-General's report on the administration of the Austudy program. The report discusses topics within the areas of program effectiveness, eligibility criteria, the Austudy program administration, and student loans in general. Among the conclusions expressed are the following: (1) the current parental income formula used to assess eligibility for Austudy allowances needs to be re-examined, and the threshold at which allowances are reduced is too low; (2) maximum incomes at which allowances cease are too high; (3) Austudy is not meeting students' total living costs; (4) the means and asset test free components of Assistance for Isolated Children and Austudy should be increased; and (5) the abatement rates must be adjusted to better target lower income families. Twenty-eight recommendations are provided. Appendices include data on full-time participation rates for 17-24 year olds, the cut-off points for the Austudy parental income test, average boarding costs, and the results of an inquiry into the living costs of young people. (GLR)