Statement before the Senate Subcommittee on Education, Committee on Labor and Public Welfare.

The purpose of federal support for the general educational goals of higher education is examined in this testimony. Such support for higher education currently amounts to $3.4 billion, exclusive of research and veterans educational benefits under the GI bill. Two roles are identified for federal support of higher education: (1) the role of increasing access to postsecondary education by concentrating resources on direct financial aid to students on the basis of need; and (2) the role of encouraging a diversity of educational programs that will be responsive to the particular educational needs of citizens. The Administration's view is reaffirmed that the best way to achieve these goals is through student aid rather than general financial support for institutions. It is suggested that the major part of federal budget resources should be devoted to student grants rather than student earnings subsidies and student loans. The Basic Grant program should be the foundation of higher education legislation, which would permit a maximum grant of $1400 for all classes of students. Suggestions are offered for perfecting the access role of this program. Coordination of federal and state programs is also recommended. (LBH)