For the past 13 years, the growth in resources for higher education has been rapid and steady. But, although institutional costs are rising and will require a greater share of the GNP, certain adverse features of the political climate, competing claims for public and philanthropic funds, and likely continued high defense expenditures will make it difficult for the rate of progress to be sustained. Among the principal sources of support, the rates of increase will change. Future expanded federal aid should be distributed so that other sources will be encouraged or required to increase their support. The financial system should also contribute toward qualitative goals, such as reasonable autonomy for students and faculty, balance among teaching, research, public service functions and the various disciplines, excellence of performance, and openness of educational opportunity including free choice of institutions and academic programs. As the pattern of support changes, a compromise should be sought between institutional autonomy as represented by unrestricted funds from diverse sources, and response to social needs as represented by various kinds of categorical aid. (JS)