The relationship between capital available for student loans and the types of programs through which loans are made to students is examined in this paper on educational finance. Cost of attendance, amount of grant aid, and ability to pay are investigated as factors that affect the amount of loans a student needs to finance a college education. Data on each aspect is analyzed for every state. A comparison of state loan programs includes the average loan amount per student. Results of the study indicate a lack of relationship between loan amounts and structural characteristics of the states. The cost of attendance is found to be closely correlated with the net cost to the family. The average loan amount is positively related to cost of attendance and net costs to the family. Regression analysis suggests that the existence of a state guarantee loan agency has little effect on a state's average loan amount per student. The presence of state loan agencies may lower default rates and operating expenses, and increase accessibility to loans. It is concluded that the presence of a state loan agency depends on the position that a state takes toward the support of education and that as loans become a more important component of financing students' education costs, states prefer to use state agencies. (Author/SF)