This report examines the facilitation of financing higher education in Hawaii. The report covers financial aid programs available to Hawaii college students, as well as prepaid and guaranteed tuition programs and college savings programs. Following an introductory chapter, Chapter 2 focuses on threshold questions such as state constitutional limitations on state assistance to private schools and federal regulation of financial aid administration by educational institutions utilizing federal financial aid programs. Chapter 3 assesses the magnitude and scope of problems faced by Hawaii's families in financing higher education, using data from financial aid applicants to the University of Hawaii system. Chapter 4 describes existing financial aid programs in Hawaii and addresses the issue of families and students whose financial needs are not currently being met. Chapter 5 surveys federal, state, and private education savings and financial assistance programs. Chapter 6 addresses the development of a workable assistance program for financing higher education, assessing constitutional and federal limitations, policy considerations, prices as incentives, and refundability. The final chapter recommends specific financial assistance programs. Appendices contain relevant state legislation, information on paying for college and receiving financial aid, and 1988-89 data on financial aid for University of Hawaii students. (JDD)