The importance of higher education in providing the skilled labor force needed to respond to changing technologies; the cost-efficiency of independent higher education; and implications for government, industry, and independent higher education are considered. The most readily changing technologies include computers and electronics, satellite communications, automation and robotics, integrated financial services, and a range of technologies in medicine and health. Since developing and implementing new technologies will require technically trained people, the educational establishment can assist the transition to sophisticated machines by educating the young and updating the training of adult workers. Broadly-based education and the ability to learn and convey knowledge will continue to be important. Four studies on the relative costs of independent and public higher education are noted. It is concluded that considering all costs and sources of funds provides insufficient evidence to determine whether independent or public colleges are more expensive; however, considering only the costs to state taxpayers provides evidence that independent schools are less expensive. It is estimated that in 1980-1981, about 15 percent of all students receiving aid in independent higher education had unmet need (the difference between education costs and available resources) in excess of $1,500. Inflating family income and all college costs, and computing the aid reductions that would occur if all the proposed federal cuts in student aid are accepted, raises the fraction with unmet need over $1,500 (1980-1981 dollars) to 40 percent in the 1983-1984 school year. This would affect 279,000 high-need students whose continuance in independent colleges and universities would be in danger by fall 1983. (SW)