A report by the president of Northeast Missouri State University (NMSU) is presented. After discussing academic standards, five challenges that face higher education are considered: adjusting institutional goals to meet social change, renewing the emphasis on quality, helping students fulfill their potential, expanding the financial support for higher education, and changing the public's perception of education. NMSU replaced the undergraduate teaching degree with a 5-year Masters in Education program to provide a full liberal arts curriculum. The university's mission emphasizes general thinking skills and preparation for graduate or professional schools. NMSU has a value-added assessment program whereby students are tested as incoming students, sophomores, and seniors. This public liberal arts and sciences university provides students strong experience in language, history, fine arts, mathematics, communication, and sciences. Many disciplines are starting mentor relationships between students and faculty members. Emphasis is placed on student learning outside the classroom through guest lectures, the fine arts, travel, and other activities. (SW)