Some of the faults and values implied by present methods of financing higher education are examined, and new financial arrangements are proposed. Problems with the current system include: the price to the consumer of higher education in relation to its cost of production, tuition gaps among schools, and evaluating the price in relation to value of education. It is important to consider who benefits from higher education and how much of the benefits are paid for by the beneficiary. The present system does not yet provide equal educational opportunities and provides even less choice, and therefore, does not express some of our most important democratic values. The proposed financial system would provide that the federal government establish a trust fund that would advance money to students in order to pay for higher education, and that students should repay these advances out of income through payroll withholding. Repayment could be carried out over a very long time; there would be no interest on the advance; and only those who had no income would be exempt from repayment. The amount advanced would be restricted to tuition actually paid; advances would be available only to undergraduates enrolled in degree programs in accredited institutions, and freshmen would not be eligible. Other aspects and implications of this proposal, called the "tuition advance fund," are discussed. (SW)