This digest of a full report of the same title critically examines the cost controversy in higher education to better understand the types of financial strategies that can help resolve the crisis in college costs. A look at why these costs are so controversial finds that rapid rise in tuition, public debate about educational expenditures and real or alleged waste, and concerns over access, have increased debate about public funding of college costs and weakened public confidence in higher education institutions. In exploring the role of federal and state policies contributing to the controversy, the analysis finds changes in federal policy influenced the overall pattern of enrollment redistribution and indirectly influenced price increases in private colleges. At the state level the analysis finds that declines in state support have led to increases in tuition at public institutions, that decreased appropriations by states usually lead to increased tuition charges, decreased grants, and reduced minority participation. A look at institutional policies and their contribution to the controversy examines why prices increased, changes in productivity, and the quality of investment in higher education. Final sections explore whether the negative effects of cost increase can be reduced, improving productivity, and improving returns on education. (Contains 7 references.) (JB)