This paper, as the title suggests, presents a discussion of the dangers and possibilities of the external degree. There are 8 major dangers that widespread offering of external degrees might precipitate: (1) the deterioration of standards rather than quality education; (2) a proliferation of degrees that might debase the degree; (3) the use of the external degree as a political instrument by legislative committees; (4) the expectations that are being raised in many quarters concerning the degree without solidly developed program plans to support them; (5) the possibility of academic isolation of the student because of the reliance on television, cassettes, and correspondence courses; (6) the grave possibility of lack of relevance in external degree programs; (7) the threat to the future of private colleges; and (8) external degree programs cause debate over what constitutes an educated person, a consequence that may well turn out to be a helpful development. On the other hand, external degree programs: (1) offer a measure of flexibility and diversification; (2) offer the opportunity for individualized learning; (3) perpetuate the philosophy of lifetime learning; (4) increase the possibility of more community involvement; and (5) offer the opportunity of joining academic institutions with alternative systems of learning. (HS)