Trends affecting higher education and prospects based on these facts are considered, with attention to enrollment, inflation, ability to pay for college, state and local support, basic research, and employment in higher education. It is claimed that the most serious problem higher education has faced in the last decade has been inflation, not enrollment decline. Based on the number of 18- to 21-year-olds, it is suggested that 1984-1986 are the most likely years for enrollment decline. Over the last decade, academics lost comparatively more purchasing power than did workers generally, and there is currently increasing pressure to restore the purchasing power of faculty salaries. The financial difficulties families experience in paying for college are not likely to ease by much, while increased state support for higher education is likely to occur. There are some indications that higher education is in the process of losing its market share for basic research. There has been a shift in the employment structure on campus, with a growth in the employment of administrators. However, concern for the quality of education may result in the enhancement of the teaching function. (SW)