This manual was prepared to assist postsecondary education institutions in meeting their responsibilities in the administration of federal student aid programs: the Basic Educational Grant Program, College Work-Study Program, National Direct Student Loan Program, and Supplemental Educational Opportunity Grants Program. Areas are identified in which administrative difficulties most commonly occur, and methods and procedures to insure sound, proper, efficient management of the programs are discussed. The areas covered are: the need for placement of financial aid offices at an administrative level reflecting their importance in the institution; adequacy of staffing; accurate and adequate recordkeeping for timely reporting; intrainstitutional communication; the need for procedural outlines and clear delegation of responsibility; the need for each staff member to have a thorough understanding of the aid programs and the lines of responsibility within the office; and the need for efficient loan collection. Numerous charts, tables, and forms are included as samples, with directions for their use. Specific directions are given for different aid programs. Appended are an agreement form covering institutional participation in the federal programs, the federal terms of agreement for computation and disbursement of Basic Educational Opportunity Grants, and excerpts from the Department of Health, Education, and Welfare Audit Guide. (MSE)