This study examines what is known about the changing impact of both federal and states' direct, need-based, student financial grant aid policies. The author then develops recommendations for further research to evaluate the effectiveness of specific state policies to compensate for a reduced Federal role in support of higher education access, especially for students in or near poverty. Critical terms used in grant aid decisions are defined, and a literature review of the subject is presented, including college choice factors and enrollment patterns, that reveals that very little assessment of the impact of these policy changes has been done. (Contains approximately 60 references.) (Author/NAV)