Politics, economics, and technology have conspired to make this an exceptionally challenging time for American higher education. Some critics claim that costs are out of control in traditional public and private nonprofit higher education. They believe these institutions will soon go the way of the railroads as for-profit institutions displace them and the Internet replaces college campuses and classrooms. Other critics bemoan the privatization of higher education and the increasing role of market forces. Still others think higher education has lost its way and fails to focus on educating undergraduates. With their cries of alarm and simple nostrums for change, these critics often miss the mark because they do not recognize the strengths of the current system and the complexity of the problems it faces. Yet defenders of American higher education who paint a rosy picture are held too much in thrall by its venerable traditions, manifest accomplishments, and worldwide reputation for excellence. The modern university is worth protecting but it must also change in substantial ways.