A nationwide assessment of higher education needs of American Indians attempted to: identify graduate and undergraduate education offerings for American Indians; determine student needs for culturally appropriate education; determine the need for trained professionals in Indian communities; and determine the gaps between those needs and available training. Researchers applied a modified inductive approach to data from questionnaire surveys of 107 academic programs, 119 Indian communities, and 30 senior Indian students. Results indicated that American Indian programs in two- and four-year schools were more concerned than universities with recruitment and services but had similar difficulties acquiring appropriate faculty. Institutions and Indian communities agreed that a major cause of Indian student dropout was lack of previous educational skills. Communities also noted that lack of role models was a factor; institutions noted financial problems; and students cited cultural pressures which were greatest at Ph.D.-granting universities. A wide variety existed in program structure and offerings. Over 17% prepared students for elementary or preschool education; 11.2%, for art; 10.3%, for history; and 9.3%, for counseling. However, communities wanted trained professionals in business, counseling, medicine, and law. Training programs did not reflect the realities of Indian survival in the 1980s. (SB)