The report provides background information on the next reauthorization of the federal Higher Education Act, and is intended for college and university financial aid officers. An introductory section chronicles the history of federal legislation for student financial aid. The next section outlines the congressional reauthorization process, including relevant committees, impact of congressional personnel changes, procedures (hearings, committee markup, floor consideration, conflict resolution), the critical factor of costs, and the role of congressional staff in negotiating legislation. Another section is devoted to factors that can influence the outcome of the legislative process including elections and retirements, emergence of leadership, committee membership, and the president and administration. The current reauthorization climate is then examined, exploring such issues as trends in cost of education, program costs, changes in groups targeted by legislation, grant/loan imbalance, indirect vs. direct loans, gatekeeping and regulatory relief, program consolidation, need analysis system, focus on defaults and quality measures, role of vocational and short-term programs, determination of an allocation formula, system automation, graduate education, remedial education, immigration, and affirmative action. Current and planned reauthorization activities by the National Association of Student Financial Aid Administrators are outlined, its task force members listed, and procedures for communicating with them explained. (MSE)