The interface between further education (FE) and higher education (HE) in the United Kingdom was examined by analyzing information from the following sources: available literature; all United Kingdom (UK) data sources regarding student enrollment, funding, objectives, and modes of study; interviews with representatives of national bodies concerned with education and employment in the UK; eight case studies involving a combination of universities (including one U.S. university) and FE colleges; and papers prepared by five other universities. Three dimensions of HE-FE interaction were identified: qualifications/curriculum; focus/purpose of linking activities; and types of interinstitutional relationships. Among the main types of HE-FE interaction identified in the case studies were the following: franchising, validation, access to HE, foundation courses, compacts, and 2+2 or 2+1 and other progression arrangements. Such arrangements were most common in business, engineering, mathematics, and computer education. HE-FE interaction was concluded to benefit universities by giving them access to more potential students through "feeder" colleges and to benefit students (especially nontraditional students) by allowing them to progress to HE. Cultural differences and operational management issues were identified as areas of concern. Contains 16 tables/figures and 42 references. (MN)