The effectiveness and efficiency of procedures employed by the federal government and participating education institutions to operate and manage the campus based and Basic Educational Opportunity Grant assistance programs are evaluated. Information was obtained by mail surveys of 756 colleges and universities. An overview is presented of the surveyed institutions, and the current condition and structure of their financial aid offices. The characteristics of schools that participate in the grant programs and of those that do not participate are described, as are reasons for nonparticipation. Factors affecting participation of students in the financial aid programs were analyzed, including counseling, consumer information, application processes, need determination, and aid packaging. A general model of aid packages is presented, which includes estimation of the cost of education, estimation of the financial resources of the aid applicant, and verification of data reported by applicants. Burdens and benefits of program oversight procedures (e.g., monitoring and validation) are analyzed for both institutions and the federal government. Administration of the National Direct Student Loan program is considered, including compliance with guidelines, characteristics of institutions, default rates, and student vs. school contributions to the default rate. Information on the research approach employed in this study and related studies is included. (SW)