There is no evidence of financial crisis in higher education, if by "crisis" one means the failure of institutions to balance revenues and expenditures. Most institutions were and are making ends meet, though not without some difficulty; most colleges and universities have had trouble recruiting sufficient numbers of students. As a rule, the institutions that attracted more students increased their expenditures for instruction per student at a slower rate than those that lost students. In both public and private sectors, the institutions that have been losing students most rapidly have raised their tuition most rapidly; this threatens private enrollment more than public. Most savings have been made at the expense of teaching and professional staffs, whose salaries failed to keep up with the cost of living. Under most circumstances, there is likely to be a hair-breadth balance between expenditures and revenues in both the public and private sectors in 1980. By 1985, unless private enrollment declines, non-state supported schools are likely to face deficits in their instructional account, and the public sector books are likely to balance without any unusual effort. Serious problems are anticipated for some institutions. (Author/MSE)