This report addresses impact of the Learn and Serve America Higher Education (LSAHE) service learning initiatives on communities, higher education institutions, and students, and is based on 3 years (1995-97) of data collection and observation at 27 institutions. LSAHE has awarded grants to higher education institutions and community organizations for the development, expansion, or enhancement of service learning courses or programs. Concerning the work performed by LSAHE programs, the study found staff usually spent more time on capacity building (such as course development) than on direct service activities and that students provided 2,650 hours of service. Concerning LSAHE's impact on student service providers, the report found that participating students reported greater civic participation and better life skills. Concerning LSAHE's impact on service recipients in the community, the study found that community organizations perceived student volunteers to be highly effective. Concerning LSAHE's impact on institutions, the report found that most LSAHE institutions reported expanded service opportunities, integrated service courses, and enhanced community relations. Concerning returns on the LSAHE investment to the community, the report concludes that over the 3 years, the programs produced a total community service value close to the level of program expenditures. Recommendations are offered. Six appendices provide methodology details. (Contains 18 references.)