This report examines some of the costs of higher education and the benefits Illinois citizens receive in return. The study examines both public and private higher education and measures the impact on a state-wide basis. Data come from the Integrated Postsecondary Education Data System and data collected by the Illinois State Board of Higher Education. Data contain direct costs of higher education, including costs to taxpayers and students, and costs paid by donations and endowments. The report highlights seven benefits of higher education: monetary benefits to students, benefits from university spending, benefits from student and visitor spending, additional state and local tax revenue, nonmonetary benefits to students and society, added productivity to society, and public service and outreach programs. Ten appendixes include a list Illinois colleges and universities; lifetime value of additional earnings; enrollment in Illinois colleges and universities, fall 1997; degrees and certificates awarded, academic year 1996-97; expenditures by Illinois colleges and universities; faculty and staff at Illinois colleges and universities, fall 1997; visitor survey; total expenditures by visitors, fiscal year 1999; direct and indirect expenditures and employment generated by student and visitor spending, fiscal year 1996; and calculation of specific nonmonetary benefits. There are illustrative vignettes throughout the report. (Each section of the report contains endnotes.) (SM)