Ways to improve undergraduate education are suggested, based on the work of the Study Group on the Conditions of Excellence in American Higher Education. After considering shared values and long-term goals for American higher education, attention is directed to both the achievements and problems of colleges. Major themes are that student involvement and motivation are the keys to learning, that learning is most effectively conducted as a joint enterprise, and that higher learning can promote intelligent action in society and the economy. Recommendations are offered about the goals of undergraduate education and about practical steps for achieving them, including seven recommendations for increasing student involvement, eight recommendations for realizing high expectations, and four recommendations for assessment and providing feedback. Also included are two recommendations to graduate schools, four recommendations to external agencies (state and system-level officials, accrediting agencies, state legislatures, and boards of trustees), and one recommendation to the research community. Advice to students concerning student involvement in learning, expectations, and role in assessment of higher education is also provided. Appendix A is a summary of the Interim Report of the Study Group. Appendix B is a list of commissioned papers and staff analyses. Appendix C contains acknowledgments. Appendix D consists of biographies of study group members and staff. Separate but related items appended are: (1) the Department of Education news release concerning the report (including a "Fact Sheet"); (2) the statements made by T. H. Bell releasing the report; and (3) an eight-page executive summary of the report. (SW)