Uses of assessment in postsecondary education and policy issues are considered. In higher education, assessment is used to refer to at least six separate but overlapping activities: (1) multiple measures to track students' intellectual and personal growth over an extended period of time; (2) state-mandated requirements for evaluating students and/or academic programs; (3) a focus on the "value added," whereby students undergo pre- and post-testing and the gains in general education and skills are measured; (4) general standardized testing; (5) making decisions about funding by rewarding institutions for performance on established criteria; and (6) measuring changes in student attitudes and values. Attention is directed to three purposes of student testing: admission/placement testing, achievement testing, and testing for graduation. Policy issues include: specifying educational quality, achievement and student access, the cost of quality, legal issues surrounding the use of tests for promotion/graduation decisions, and the use of performance criteria in the budget process. It is proposed that concern with the outcomes of college and student achievement is likely to become an increasingly prominent policy issue. (SW)