This report extends earlier Carnegie Council comment on and advice about the proper ethical condition for higher education. Higher education in the United States is thought to have made many positive contributions to ethical conduct; yet some signs of deterioration are observed in important parts of academic life. Fourteen recommendations are made for specific action in these areas: student consumer education; information centers for better student choice; institutional codes of rights and responsibilities; statements and enforcement of penalties for ethical infractions; equitable, easily understood, and published grievance procedures; full and complete disclosure of institutional practice; the increased involvement of regional accrediting agencies in matters of institutional rights and responsibilities; state standards in approval of degree-granting programs; decreased federal involvement in some areas; simplification of procedural compliance with federal regulations, and elimination of some procedural regulations; and federal and state legislation to facilitate collection of defaulted student loans. (Author/MSE)