But representatives of companies that would be removed from the financial aid application process disagree with Miller's assessment.

"The unitary federal application would be divorced from state and institutional programs, which only fragments the process," said Lawrence E. Gladieux, executive director of the Washington office of the College Board.

"Federalizing the process would spawn additional forms and paperwork to add to the bureaucracy," Gladieux said.

The bills also provide for an application bypass for low-income students, a simplified definition of independent students and the removal of home, farm and small business equity from financial aid considerations.

Another controversial feature of the bill relates to the elimination of accrediting agencies from the financial aid process.

"It would shift the burden of evaluation to the federal government," said Miller, who was concerned that Department of Education officials would not be as thorough as local inspectors.

The House Committee on Education and Labor will begin considering the bill next Tuesday. The Senate bill is already under consideration by the Labor and Human Resources Committee.

According to the spokesperson, the two bills are not exactly alike, but he expects the minor differences will be worked out.