The institutional administration of student financial aid programs is examined in this first of a two-volume study on program management procedures in the Basic Grant and Campus Based assistance programs. Sections I and II begin by sketching the background and context of the subject of student aid with emphasis on institutional practices, i.e., the history of its development, a review of the existing literature, and a discussion of the distribution of Federal student aid funds. Section III begins with a profile of institutional financial aid office operations and concludes with a discussion of the interface between these offices and the Federal government. The final sections explore various aspects of the role of the institution regarding student need analysis, budgeting, aid packaging, loan management, student information, monitoring and validation. Appendices include major project deliverables and the current financial aid programs administered by the U.S. Department of Education. Exhibits, figures, and tables offer statistical support throughout the report. (LC)