The role and importance of American colleges and universities in shaping the national experience within the United States is discussed. Noted is the value of having a college degree in today's society and how it affects family income. The report continues with an assessment of the scope of higher education institutions in America, considers the student diversity that is now present and increasing, and explains the importance of the role of the college teacher in preparing students to function effectively in a modern, complex, and global economy. The benefits that have been derived from research conducted at colleges and universities are highlighted, such as the uses involving high-intensity microwave radiation, better agricultural techniques, and better weather forecasting. Higher education's role in public service is also highlighted, for example, literacy training for adults and bringing academic expertise to bear on local, state, and national problems. Also discussed are the various ways colleges and universities receive their funding, particularly the Federal Government's continued role. The report concludes with an historical review of past government support of higher education, a discussion of the aspects needed in a continued partnership between government and higher education, and higher education's obligations in making life better for Americans. (GLR)