Designed to help high school guidance counselors advise students about financial aid for postsecondary education, this handbook provides information on sources of aid from programs administered by the U.S. Department of Education. The guide is divided into three parts: (1) General Information about Postsecondary Opportunities; (2) The Application Process for Financial Aid; and (3) Filling Out the Free Application for Federal Student Aid. Part One advises the reader on sources of aid, general eligibility requirements for student aid, demonstration of need, and how to choose a school. Part Two discusses the federal role in application processing, how one should apply for aid, how to submit an initial application, how the application is processed, reviewing the Student Aid Report (SAR), making changes to the SAR, filing an application, and 1996-97 application deadlines. The last section offers detailed instructions on how the student should fill out aid applications with tips on outlining educational background, one's plans, student status, household information, income, the simplified needs test, asset information, releases and signatures. Also included is a special supplement targeted toward disadvantaged students that suggests ways to encourage high school students to consider postsecondary education as an avenue to a more rewarding career. Three appendices list further sources of information, state agencies in education, and a glossary of terms. (JBJ)