This report lists recommendations approved by the National Association of Student Financial Aid Administrators (NASFAA) for reauthorization of the Higher Education Act and is intended to be submitted to U.S. Congressional hearings scheduled for fall 1997. It covers nine major areas: (1) grant-loan imbalances; (2) level playing field loan issues; (3) grants to students in attendance at institutions of higher education; (4) the federal family education loan program; (5) federal work-study programs; (6) the William D. Ford federal direct loan program; (7) the federal Perkins loan program; (8) need analysis; and (9) general provisions relating to student assistance programs. Text for each section is arranged across three columns; the first lists the provisions of the current law, the second contains suggested legislative language to accomplish the changes sought by NASFAA, and the third column notes the rationale for the suggested revision. An appendix lists miscellaneous suggested amendments for Pell grant and other programs, Title IV eligibility, study abroad, block grants, project EASI, and implementation dates. (CH)