Several problems have been identified in the administration of student financial aid programs in California, including high default rates in the Guaranteed Student Loan (GSL) Program, a significant decrease in the number of eligible students receiving financial aid, workload increases in program administration, and unmet needs for financial aid for community college students. After studying financial aid problems, processes, and trends, the Chancellor's Task Force on Student Financial Assistance developed a series of recommendations for enhancing the Board of Governors of the California Community Colleges' role in policy development at the federal and state levels. The task force recommended that the Board of Governors: (1) support federal initiatives to increase the availability and accessibility of federal grants to community college students; (2) support legislation to establish a new state grant program for community college students to reduce their dependence on loans; (3) adopt financial aid packaging policies that encourage colleges to restrict as much as possible federal loans as a source of financial aid for first-time students; (4) support federal initiatives that would help institutions reduce GSL default rates, while reaffirming the colleges' open door philosophy; and (5) focus new or redirected federal and state funds on first-time students and investigate work-study programs as an alternative to loans. A loan profile of the California community colleges is appended. (AJL)