Key trends in higher education in the 1970s are summarized, and the current condition of higher education in terms of its human, physical, and financial resources is reviewed. Attention is directed to progress to broaden access to higher education, to preserve quality programs and services, and to maintain fiscal health. Data are presented to indicate that higher education is a major U.S. industry. Much of the growth in higher education during the 1970s resulted from serving previously underserved citizens. To balance their budgets, higher education institutions have had to focus on controlling costs internally through short-run economies, holding down faculty salaries, deferring maintenance of buildings and equipment, and postponing needed equipment purchases. It is suggested that the Education Amendments of 1980 provide the potential over the next five years for sustaining the national commitment to equal educational opportunity by authorizing increases in the maximum federal student aid awards to compensate for inflation, but appropriations must be increased accordingly to realize this potential. Endowment income has lost significant ground to inflation, and though overall voluntary support has increased substantially, it has failed to keep pace with expanded enrollments and inflation-induced cost increases. It is concluded that higher education institutions have begun to experience a depletion of their human, physical, and financial resources. (SW)