Certain aspects of the Guaranteed Student Loan, National Direct Student Loan, College Work-Study, and Supplemental Educational Opportunity Grants programs are reviewed and evaluated. The rules and regulations OE provides to educational and lending institutions for administering the federally sponsored student financial aid programs are found to be consistent with the provisions of the authorizing legislation. Generally, financial aid offices did not consider race, sex, athletic ability, academic record, and alumni relationship of student applicants. However, some financial aid officers were influenced by one or more variables in addition to need, such as age, class in school, and place of residence. The present process for allocating loan funds to educational institutions is apparently not equitable. Some institutions receive all or more than the total funds they need to meet the needs of their students while others receive substantially less than their actual need. Regional review panels do not have enough time or data to make appropriate review of institutional applications. Recommendations to HEW are offered. (LBH)