This report examines sex discrimination in institutions of higher education and the implications for all Office of Education programs. Part I presents an overview of sex discrimination in education, including: (1) early education reinforces ideals of male superiority; (2) sex discrimination in secondary education; (3) biases in postsecondary education; (4) women with special needs encounter additional difficulties; (5) the education system as an employer; and (6) research and development. Part II describes the relationship between the federal education agencies and the pervasive sex discrimination documented in Part I. Chapter I outlines existing discrimination in Health, Education and Welfare programs and necessary steps to carry out a legal mandate to end discrimination in federal education programs. Chapter II presents a plan for creative federal leadership in fulfilling the spirit of the laws against sex discrimination. (Author/MJM)