Two contentions are examined in this report: that community colleges receive a smaller amount from state and federal assistance programs than they should in view of the less affluent population they serve, and that there is, on the other hand, a prevalence of individual over-awarding at these colleges. The report first discusses the difficulties involved in determining legitimate student need, such as the lack of consensus concerning parental obligation to contribute and the appropriate balance of self-help and grant aid. Three main causes of over-awarding are then examined: the differing standards for determining non-tuition costs of attendance; the treatment of veterans' benefits under the Basic Grant program; and the lack of coordination between state and federal assistance programs. The report then explores the possibility that public student aid programs work to the disadvantage of community college students by analyzing the distribution of campus-based support and Basic Grants among two- and four-year colleges during fiscal years 1972 and 1976. Finally, the assertion is tested that student aid officers at community colleges are inferior to those at other colleges. Summary conclusions are presented and several tables are appended. (JP)