This report outlines the current problems of financing education and illustrates how the establishment of a National Education Trust Fund (NETF) by the Federal Government would enable the nation to overcome these problems. NETF, according to the author, would operate on a revolving, self-liquidating basis; and it would finance a major portion of the costs of education at all levels. Recipients would repay their education costs through an education tax that would vary according to the years of schooling received and their income level. The author presents projected costs, enrollments, and the NETF shares of total education expenditures. (JF)