Structural and economic problems facing higher education and potential new markets opened by continuing education are discussed, based on a study of 24 public and private institutions. Programming areas in continuing education are distribution requirements, contract training for employees of business, and noncredit courses for the general public. Three levels of cost pertain to instruction, administration, and institutional overhead. The major sources of income are tuition and fees, government subsidies, voluntary contributions, and general organization funds. Four prominent factors in programs that produce a financial surplus are economies of scale, proximity to a population base, economical use of adjunct faculty, and public support. Also important are financial results for evening and off-campus credit programs, general noncredit programs, and community service offerings. However, broadly conceived continuing education cannot be a financial substitute for credit and degree-granting programs that offer credentials. Public support for funding continuing education and legislative requirements for public funds are additional concerns, as are possible conflicts of interest for college faculty who engage in freelance instruction. (SW)