The issue of federal intervention facing institutions of higher education is addressed and quantitative and qualitative impacts of recent federal legislation and regulations on higher education are measured. Precepts posited in defense of federal intervention are articulated, including: financial contributions, social injustice, moral responsibility, and student unrest. The general costs of complying with federal laws and regulations are also considered, including the Health Professions Educational Assistance Act of 1976; the Copyright law of 1976; Affirmative Action and Equal Opportunity; and Section 504 of the Rehabilitation Act of 1973. Steps recently undertaken to reduce these costs are examined and additional solutions are offered. A prognosis is offered for what higher education can look forward to from the Federal government and what role it can play to protect its interest. (Author/JMD)