In the past several years a trend toward government funding of higher education through students has been emerging. This trend, which proposes to apply the market model to higher education, is largely the work of well-meaning economists, persons possessing only the high motives of equalizing opportunity and improving efficiency in higher education. Their motives are so fine that less desirable, noneconomic outcomes have not received careful consideration. After careful study of the trend, it is felt that the market model probably cannot and should not be applied to higher education, the reasons for this being that higher education, as presently designed, does not sufficiently represent a marketplace. In additon, it is felt that such a system has limited goals, imposes federal restrictions that may not be overcome by many institutions, and creates a limited public service because of the restrictions. It is recommended that the priorities of higher education be reexamined to determine the logical order of the economic and social factors involved. (Author/HS)