Issues that are relevant to promoting the intellectual potential and trained competence of the U.S. population are addressed. Important concerns include the following: preventing retardation among unborn children and young children; providing essential early childhood experiences through programs such as Head Start; and insuring literacy among high school graduates. It is proposed that a phonetic system of reading instruction be reinstituted and that U.S. schools begin the practice of administering tests such as Great Britain's "A-level" and "O-level" examinations to determine students' overall learning progress. In addition, high admission standards by colleges of education can help insure the preparation of qualified teachers. It is suggested that intellectual capital formation is threatened by cutbacks in foreign language instruction and federal student financial aid. A Tuition Advance Fund (TAF) is recommended as the best approach to finance higher education. TAF would allow degree candidates to be advanced up to $7,500 (in 1982 dollars) to educational expenses, of which no more than $1,000 could be for nontuition expenses. After graduation, students would repay through a new payroll withholding tax. Funding for the program could come from programs that TAF would replace. (SW)