Major policy options for American higher education in the next two decades, which is a period of potentially unused capacity, are considered. The focus is upon both public policies relating to higher education and policies of colleges and universities individually. It is suggested that the number of enrollees in higher education is partially determined by conscious policies of higher education institutions, employers, and government. Four options for keeping the present higher educational system intact even if enrollment should decline substantially are as follows: (1) redirect resources toward higher quality; (2) redirect resources toward research and public service; (3) redirect resources toward new student clienteles; and (4) retrenchment. Types of adult learning and the role of higher education in adult learning are considered. Established guidelines or principles derived from experience with adult learning in higher education which may be applicable to institutions or to funding agencies are presented. (SW)