Designed to help educational policy makers understand student financial aid in California, this booklet covers the importance of aid, how it has changed, current programs, need analysis, packaging, public and student views, graduate aid, and politics and problems of aid. As student financial aid became a larger and more complex educational industry, the necessity arose to review the policies around it and identify any problems. Thus, the privately organized and funded Eureka Project was started to review the development of student financial aid in California. Student financial aid for postsecondary education involves about $1,500,000,000 as of 1987, with about 10% of all California families participating in some way. The importance of this aid in helping independent colleges survive and helping low income and minority students get an education is discussed. Financial aid to students has grown significantly over the past 30 years, and aid now includes grants, scholarships, loans, and part-time employment. The federal Guaranteed Student Loan (GSL) program is the largest current program with the Pell Grant program the next largest source of federal aid. State funds are generally in the form of grants, including Cal Grants. The determination of needs is explained along with the different types of aid packages. The manner in which students and the public view student financial aid. os addressed, and political issues and various problems are considered. (SM)