The use of standardized tests for program evaluation, student placement, and student progression in order to improve the quality of higher education is discussed. It is noted that student achievement is being used as a criterion for judging programs as part of state assessments. Although standardized test scores have long been used by institutions for counseling and course placement, new initiatives coming from the state level would refine and strengthen this effort through new instruments and mandated participation by public colleges. In addition, standardized exams to establish minimum standards for student progression in higher education are a limited but growing response to concerns about quality. Some systems are using these exams to screen students seeking admission to teacher education programs. Georgia and Florida require all students to pass a minimum competency exam for advancement to upper-division programs. Legislative initiatives, legal issues, and national developments are discussed, with attention to topics such as: diagnostic testing for placement purposes, valued-added testing, national longitudinal studies, evaluation of undergraduates, and assessment of adult literacy. (SW)