This report presents the findings and recommendations of the Advisory Committee on Student Financial Assistance resulting from the committee's ongoing evaluation of student loan programs and their delivery system. The role of the committee is to provide extensive knowledge and understanding of federal, state, and institutional programs of postsecondary student assistance; to provide technical expertise with regard to systems of need analysis and application forms; and to make recommendations that will result in the maintenance of access to postsecondary education for low- and middle-income students. The particular findings presented here concern the improvements made in 1995-96 in the Ford Federal Direct Loan Program (FDLP) and the Federal Family Education Loan Program (FFELP). Findings indicate that the Department of Education (ED) successfully expanded the FDLP from slightly more than 100 institutions participating in 1994-1995 to over 1,200 in 1995-1996. ED also supplied improved software and systems. ED is exploring ways to improve its reconciliation process. ED, legislative, and loan industry initiatives have contributed significantly to the improvement of the FFELP, resulting in streamlined delivery and simplified processing for institutions. Specific recommendations to further improve each of the two programs are offered. Two appendices contain legislative information, and one appendix lists the committee members and staff. (CK)