This report reviews trends affecting rising costs and prices in higher education and proposes an action agenda for colleges, government at all levels, families and students, and other patrons. The recommendations emphasize shared responsibility to (1) strengthen institutional cost control; (2) improve market information and public accountability; (3) deregulate higher education; (4) rethink accreditation; and (5) enhance and simplify federal student aid. "Cost" is defined as the expense a college incurs to deliver education to a student, and "price" means the portion of those costs students and families are asked to pay. Information was obtained for the period 1987-96 on costs, prices, and generalized subsidies for public and private four-year colleges and universities and for public two-year colleges. College affordability was assessed based on trends in family income and the amount students pay for college after financial aid. The following factors were reviewed to trace their impact on rising costs and prices: financial aid; changes in the composition of students, faculty, and administrators; facility expansions; increased use of technology in higher education; increased costs of accreditation and compliance with regulations; and changing expectations about quality. Appended materials include an agenda of additional issues called: "The Unfinished Agenda", technical notes, biographical information on the commissioners and a list of meeting places and dates, reference material consulted, a list of consultants, and supplementary research materials with over 100 statistical exhibits related to such issues as enrollments, net price, expenditures, tuition, faculty workload, federal, state, and local regulations, and adequacy of financial aid. (SW)