CASFAA was part of the Student Affairs Division (SAD) of the Canadian Association of College and University Student Services (CACUSS) for the 1978, 1979 and 1980 Annual Conferences. During the 1978/1979 year, CASFAA developed its own constitution, terms of reference, and objectives. The stated objectives included promoting the professional development of its members, fostering communication regarding scholarship and need-based programs among student financial aid personnel at Canadian post-secondary institutions, reviewing government financial aid policies and their administration as they impact students, initiating financial aid research, and cooperating with other agencies and councils.

Two key meetings occurred January 10, 1979 at the University of Ottawa and June 18, 1979 at the University of Sherbrooke when the relationship with CACUSS was reviewed and alternatives developed to meet CASFAA's goals more effectively. Of the two alternatives, it was decided to pursue establishing CASFAA as a separate Division under CACUSS, rather than create an independent association.

At the 1980 Conference at the University of Victoria, CASFAA met June 17 and the members endorsed the proposal to become a separate CACUSS Division. CACUSS granted CASFAA divisional status and invited CASFAA 1979/1980 President Patrick Phillips and 1980/1981 President Vern Loewen to join the CACUSS Board of Directors. Also at the June 17 annual meeting, the 1980/1981 CASFAA Executive was established, as well as eight regional representatives. Among the objectives outlined for the 1980/1981 year: meeting with the CSL Plenary Group and the Federal/Provincial Task Force on Student Assistance, protesting the new CSL interest rates and entering into negotiations regarding the new rate, undertaking a membership drive, building up financial resources, examining possible liaison with the National Union of Students, and developing practical approaches for member professional development.

Such was the beginning of CASFAA as an active force at the national level, working for the improvement of financial student aid policy and administration, at the same time as committing to providing effective professional development opportunities for its members.