The urban university has become the dominant institution of higher learning in America. Although the concept of university is in keeping with traditions in American higher education, there are major obstacles to the fulfillment of the urban university's purpose. The urban college and university have great potential in playing an increasingly important role in the life of the city. Their future development, however, depends on educational policies that originate in Washington. American education has struggled with the question of who should go to college. Two traditions of equality include one that emphasizes meritocracy and the other opportunity for all regardless of intellectual merit. The emergence of urban studies, urban research, and university involvement in the affairs of the city has had limited impact on substantively changing the urban condition. The development of black studies programs has been controversial. The crisis in higher education may be attributed to excessive concentration on credentialism, a faltering economy, and strategies to reduce inequality and increase social mobility of specific groups of students. An extensive bibliography is included. (Author/AM)