This paper is the fourth in a series of yearly efforts to identify the top 10 public-policy issues facing higher education. Each of the issues is discussed in terms of likely developments in 1997-98, the issue's various aspects, and sources of further information. Issues identified are: (1) the Higher Education Act Reauthorization (issues relating to the federal role in making college more affordable and accessible); (2) federal budget constraints (the commitment to balance the budget jeopardizes all programs including student aid and campus-based research); (3) various federal tax proposals affecting higher education; (4) innovative state financing (demographic trends and slower growth of state funding); (6) health-care system changes (reforms to the Medicare program will affect most colleges and universities); (7) fair use under copyright law (institutional fair-use policies face rigid guidelines that impinge on important educational needs); (8) job training (Congress is expected to look at every piece of legislation that affects job training and employment); (9) the quality of teaching and learning (concerns about teaching and learning will lead to review and modification of conditions of employment and training for teachers); and (10) the virtual university (many issues relating to the governance and financing of technology-based virtual universities must be resolved). (DM)