Recommendations and issues concerning reauthorization of the Higher Education Act of 1965 are presented in testimony from representatives of higher education from the State of Illinois and its postsecondary institutions. The Act provides the primary source of support for postsecondary institutions and students. The link between the amount of educational aid granted and the economic strength and development of a particular area is discussed, with attention to cooperation between colleges and industry, research and development, and continuing education for scientists and engineers. The rehabilitation and modernization of physical facilities is another issue facing many colleges today that is addressed by the act. To illustrate the problem, a building condition audit for the University of Illinois is included. It is argued that Illinois does not have the resources to replace federal student financial aid funds if the federal programs are reduced or fail to keep pace with increasing college costs. Specific recommendations are offered for reauthorization that would be beneficial to Illinois community colleges, including recommendations to make education better serve working adults and part-time students, to serve adult students needing occupational education, and to renew cooperative education. (SW)