This report must be considered in conjunction with the earlier report (ED 024 349). Changes or new recommendations are suggested in the following areas. Higher education priorities for the 70s must include equality of educational opportunity, education for health services, and academic reform. Grants and payments should be made to needy students in the form of educational opportunity grants, supplementary matching grants, federal scholarship grants to institutions and work-study programs. A national student loan program should be established. Aid should be awarded to the most able graduate students. Counseling and talent search programs would increase the effectiveness of post-secondary education. Veterans benefits and other national services should be continued. Aid to institutions should be awarded through cost-of-education supplements, construction grants and loans, special purpose grants and funding of university-based research. A National Foundation for the Development of Higher Education should be formed. There should be clear federal responsibility for higher education and a cabinet-level officer for education. The report also projects future funding needs to 1979-80. (AF)