Hearings on reauthorization of the Higher Education Act of 1965 that were held in McKeesport, Pennsylvania, in 1985 are presented. The largest and most important programs contained in the Higher Education Act provide grants, loans, work opportunities, and special services to students with a demonstrated need for federal financial aid. These student aid programs play a major role in achieving the federal objective of equal educational opportunity. The Act also contains programs to assist college libraries, international education, and cooperative education, as well as the Fund for the Improvement of Postsecondary Education. Testimony is offered by representatives from large public and private institutions, small private and public colleges, two- and four-year colleges, and from agencies and persons that serve specific constituencies. Included is an overview of the situation facing residents of economically depressed areas in Pennsylvania who are unemployed or underemployed and no longer financially able to help their children with tuition and other college costs. It is noted that Pennsylvania ranks second nationally in the amount of money in default on student loans and in the number of students who are in default. The implications of the Reagan Administration's proposals to decrease aid and restrict eligibility for aid are addressed. (SW)