This report highlights recent and projected economic trends that affect higher education, focusing on national economic conditions, government support for higher education, students' ability to pay for college, and labor market trends. It found that the U.S. economy, as measured by the gross domestic product (GDP), is projected to grow at a slightly slower rate between 1992 and 2005 than it did during the 1979-1992 period. The share of GDP spent on higher education reached 3.1 percent in 1992, up from 2.6 percent in 1980. Between 1980 and 1993, federal appropriations for higher education, including research, increased from $30 billion to $33 billion in constant 1993 dollars. However, federal appropriations per full-time equivalent student decreased by about 9 percent in terms of constant 1993 dollars. The share of personal income that went to low- and middle-income families declined between 1980 and 1992, with their savings as a percentage of disposable income also declining. The Bureau of Labor Statistics projects that, with the exception of jobs in the service sector, the jobs expected to experience the most growth between 1992 and 2005 will require high levels of education. (MDM)