The council's recommendations for 1977 for college-based financial aid programs and for the guaranteed student loan program are both summarized and explained, and the progress of financial aid programs in 1976-77 is reviewed. The latter review includes the training of aid administrators, aid application simplification, regulations and guidelines, differences of opinion within the financial aid community, the determination of academic good standing, college work-study, fraud, threats to the National Direct Student Loan and Supplemental Educational Opportunity Grant programs, and the Guaranteed Student Loan program. The recommendations cover management considerations, reorganization of the Office of Education, aid program information and dissemination, transferability of funds, overawards, aid administrator training and certification, good academic standing, the role of the states, independent and nontraditional students, aid program flexibility, income tax credits, professional schools, student bankruptcy, and loan consolidation. Appended are: the text of an address by Edward Fox to the advisory council; Roy Thomas Codgell's model for streamlining federal aid administration; items relating to aid administrator certification; and a brief bibliography relating to the aid problems of small private colleges. (MSE)