Hearings on the reasons for the Pell Grant Program shortfall and possible solutions are presented. The U.S. Department of Education's estimate was for a Pell grant shortfall of $307 million for 1983-1984, which was borrowed from the fiscal year 1984 appropriations. Current funding for Pell Grants is below what is necessary because initial funding for the 1983-1984 academic year was insufficient and because a larger number of students who are financially independent of their parents applied for grants than was expected. An increased number of applicants in the age group 23 to 27 was found; 62 percent of the total increase was for students over age 27. These increases come primarily from family incomes of less than $7,500; the income from the independent student-adjusted gross income runs around $4,000. About 48 percent of the increase in applicants came from the students who were unemployed, or receiving welfare or other government benefits. The data on applicants indicate that lower income students seem to be taking advantage of the Pell Grant program. Three options are: to seek a supplemental appropriation; to publish a reduced payment schedule; or to seek an increased appropriation for FY 1985 to cover the funds that have been drawn down from the FY 1984 appropriation. (SW)