The policy decisions regarding higher education that are now being made will have a profound influence on the future of higher education. The issues boil down to the questions of: who should go to college; who should control colleges; who should pay for colleges; and who should make national policy concerning higher education. What directions higher education will take will be determined by the methods the federal government adopts to allocate its resources. The alternatives are: continuation on the present course of supporting categorical programs, academic facilities and student aid; channelling funds primarily through the individual students; or providing support directly to the institutions. In its advisory report to the Secretary of HEW, the Wescoe Committee evaluated the assets and liabilities of categorical support. The Committee described the effect of the lack of clear goals on higher education. One of the plans involving channelling funds through students is provision of tax credits for educational expenses. This plan is politically appealing but would hurt low income families, working students and veterans on the GI Bill, and would cost the Treasury a billion and a half dollars yearly. Another proposal is the Educational Opportunity Bank or "Student Life Indenture Plan." The alternative of providing direct institutional aid is supported by the 7 major national higher education associations and bills proposing such general aid programs have been introduced in Congress. (JS)