This report discusses the various interpretations of the external degree concept, its potential impact on American higher education, and how an urban university may expand and improve its delivery systems to a larger variety of student populations on a sound financial basis. Areas covered include: prospective students; experience with home study courses; credit toward a college degree for life experience and/or through the nationally standardized examinations of the College Level Examination Program; institutions that should offer the external degree; nontraditional practices in American universities; and faculty attitudes toward external degree programs. (Author/CS)