This report presents findings of an analysis of the debt incurred by college graduates from student loans and of the ability of Florida residents who graduate from state institutions to repay this debt within discretionary income. Further reported are recommendations for a systematic procedure for determining the need for increased funding of need-based student financial aid. Among the findings reported are the following: (1) the debt burden of the State University System (SUS) loan recipient graduates (approximately 4.0 percent) was not excessive according to national standards; (2) while gender differences were minimal among SUS borrowers, race differences were more noteworthy in that blacks were twice as likely to borrow as white students and accumulated more debt than other students; and (3) borrowing money did not have a negative effect on a student's grade point average or time to graduation. Also reported are results of an indebtedness study which showed that students graduating, continuing, or dropping out of one of the nine state universities between 1985 and 1990 did not, when compared to national averages, incur an excessive amount of loan indebtedness; but that private or proprietary institutions, however, showed higher student indebtedness. Significant increases in all types of future loans are anticipated. Issues and recommendations are discussed. Appendices include data tables and the financial aid survey instrument. (GLR)