The transcript of joint hearings on college assistance legislation before the Senate Committee on Human Resources and the House Committee on Education and Labor is presented. The hearings concern amendment of the Higher Education Act of 1965 to improve the Basic Educational Opportunity Grant (BEOG) program. Witnesses included Joseph A. Califano, Jr., Ernest Boyer, and Michael O'Keefe. Discussion focused on providing or altering aid programs to compensate middle-income students. A majority of the aid proposed would be channeled through the BEOG program. Increased funding is also discussed for the Supplemental Grants and College Work-Study programs. The increased funding would be aimed at families with incomes between $8,000 and $16,000. It is estimated that in 1979 this would mean an eligible pool of 640,000 students, more than doubling the number of awards in federal student assistance programs from 3.2 million in 1978 to more than 7 million in 1979. Also discussed are tuition tax credits, aid to parochial and private schools, elementary and secondary schools, loan defaults, and state insured loan agencies. Several alternative methods of delivering higher education assistance to middle income students are also examined. Also included is information on states that are starting their own student loan agencies. (SF)