The motion of the American Council of Education (ACE) and the National Institute of Independent Colleges and Universities (NIICU) to reverse the Fifth Circuit Court of Appeals decision in The University of Texas vs. Walter Camenisch is presented. The decision had ordered the university to provide free interpreter services to Camenisch, a deaf student. The ACE and NIICU argument revolves around whether, under Section 504 and the Court's ruling in Southeastern Community College v. Davis, colleges and universities that receive federal aid are required to procure and compensate interpreters for hearing-impaired graduate students. The argument presented includes the following suggestions: (1) the Fifth Circuit's interpretation of the Departmental regulation (504) is not supported by the language of the provision at hand; (2) the Court of Appeals' holding conflicts with the Supreme Court's decision in "Davis" because it operates to establish an affirmative action obligation not authorized by the state; and (3) the Fifth Circuit's decision fails to accord proper consideration to the reasonableness of the accommodation requested and the hardship it would impose on the University of Texas' program. It is proposed by ACE and NIICU that the Court affirm its decision in Southeastern Community College v. Davis and hold that the nondiscrimination requirement of Section 504 does not obligate a covered university to procure and compensate a sign language interpreter for a deaf graduate student where that student is able to pay the costs. (LC)