This document reports on the ability of students and parents in the South to pay for the costs of education. The financial barrier that inhibits the education of many citizens and the efforts of state governments, federal government, and the postsecondary institutions to eliminate the barrier are described. Highlights indicate: (1) The financial aid needs of the full-time undergraduate students in the colleges, universities, and public vocational-technical schools in the SREB (Southern Regional Education Board) states exceed $1.08 billion. (2) Over $828 million in financial aid from all sources is available to undergraduates. However, because not all aid is distributed among institutions in proportion to student financial needs, the unmet financial need or additional aid required exceeds $339 million. (3) The need for additional financial aid is greatest at the 4-year nonpublic colleges. (4) The students from families with incomes of less than $6,000 per year have the largest unmet need, 34 percent of the total. (5) Federal student aid programs are the largest single source of aid to students in the SREB states, contributing over 27 percent of all available aid. (6) Almost 34 percent of the total available aid is in the form of loans. (7) If all student financial aid were made available on the basis of need and distributed to students in proportion to their need, unmet financial need would be reduced by 23 percent. (Author/MJM)