Federal and state student financial aid programs and their future are outlined in this discussion paper. An introduction to the issues of student financial aid and higher education finance includes recent changes in financing patterns due to expansion, reduction, and erosion of assets; state and federal appropriations; tax privileges; and student ability to pay costs. Originally a financial issue, these matters are now seen as a public policy issue. Current federal and New York state student aid programs are reported, with data given on federal programs on dollar support, percentage of the total aid appropriation, and estimated number of recipients. The future of state aid programs is seen to hinge on the changing student population. Four questions are raised about the changing population influence on student aid in general: (1) What are the implications of enrollment decline on higher education finance and student aid? (2) How should remediation costs for underprepared students be met? (3) Are there special student aid needs for adult students? and (4) What are part-time students' needs and to what degree are New York taxpayers willing to meet them? Other questions raised are: (1) Would entitlement programs expand to cover a higher proportion of cost? (2) How should loan program costs be controlled while still meeting legitimate borrowing needs? and (3) Should tax policies be used to support college costs? A series of exercises is provided for discussion of these questions. Appended charts and figures give information of New York State award types and dollar ranges, trends in student costs and federal aid programs. (MSE)