This analysis of higher education financing examines the need for the provision of additional funds to higher educational institutions and the availability of adequate aid funds to parents and students. It is concluded that there is no single solution to the problems associated with higher education finance that is suitable for all colleges and students. A variety of educational financing techniques are needed which could be employed individually or in conjunction with other devices. It is important to insure that higher educational institutions become more efficient in using new funds. Differential tuition pricing is an effective device for generating more funds for an institution, but it would succeed only if other sources of funding were provided for the parent and student. Other sources of funding are long-term, low-interest loans made by the government directly to the student and the "E" Bond device. These schemes must be politically feasible, the amount of money available for the loan must be meaningful, and the terms for repayment must be reasonable. Existing federal support programs and some of the associated problems are discussed. (SW)