This statement by the deputy commissioner of the Bureau of Student Financial Assistance of the Office of Education discusses the Basic Educational Opportunity Grant Program and proposed changes in the Family Contribution Schedules for the 1978-79 academic year. Progress of the BEOG program during its four years of operation is reviewed, and tables describe clearly various characteristics of the Basic Grant applicant population. The adoption of a common application calendar and common data elements in noted. Proposed changes in the family Contribution Schedule have to do with: treatment of family size offsets; revision of the criteria for determining the "responsible parents"; revision of the criteria for determining when the financial circumstances of a step-parent are considered; loss of unemployment benefits as a permissible reason for filing a supplemental form; and loss of assets resulting from a natural disaster in a national disaster area. Consideration is also given to a proposed revised definition of an "independent student"; and to asset reserves for farmers and businessmen. Fifteen tables are appended. (LBH)