The Task Force on Student Financial Aid was formed to recommend ways in which Massachusetts' student aid programs might be modified in light of nationwide trends of rising college costs, reduced availability of federal student assistance, and a decline in the ability of many families to pay for college. The first chapter of the task force report, "Higher Education and Student Aid in Massachusetts," discusses providing a quality education in the public sector, preserving a strong pluralistic system, reducing economic barriers to access and choice, and the shared responsibility for financing higher education. The second chapter discusses the following issues and presents the task force's recommendations on each: expanding opportunities for underserved populations; providing the necessary support services and information; linking costs, tuition and financial aid; encouraging early saving for college; addressing labor force needs; and improving program effectiveness and efficiency. The charge to the task force, current state student aid programs, and pending student aid legislation are discussed in appendices. The recommendations of Chancellor Franklyn G. Jenifer to the Board of Regents of Higher Education regarding the report are also provided. (KM)