The members of the National Association of State Scholarship and Grant Programs (NASSGP) are surveyed annually to collect data on state and territory funded scholarship and grant programs to undergraduate and graduate students to attend public or private postsecondary institutions. The following are among the highlights reported in this year's survey: (1) aggregate need-based grants to undergraduates are expected to grow by 13%, from $1.234 billion to $1.399 billion; (2) only about half the states have seen their grant dollars grow at a greater rate than their recipients' costs; (3) percentages of aid recipients who are Black are declining precipitously, while percentages of Hispanic recipients are declining less rapidly; (4) as college costs continue to rise, more students are applying for state grant aid; and (5) some evidence indicates that grants are increasingly targeted to the lowest-income applicants. Data analyses are grouped under the following headings, each section consisting of a narrative followed by extensive tables of data: comparative program statistics, 1985-86 and 1986-87, and earlier years; program characteristics; policy issues and concerns; distribution of undergraduate need-based aid among student categories; and trends in need-based undergraduate aid dollar volumes by states. A listing of NASSGP officers and a directory of state grant agencies are appended. (KM)