Defining and measuring college quality is a contentious issue, and the debate about how to do so is far from settled. What is quality when institutions produce outputs ranging from student learning and labor-market success to research? How is student learning measured when students specialize in a major field? How are quality metrics tied to funding in a way that recognizes the diverse missions of institutions? While these questions remain unanswered, states continue to move forward with outcomes-based funding models. Policymakers need useful information to guide these important decisions. Unfortunately, existing evidence comes from a myriad of disconnected and undigested sources such as: (1) Academic and policy literature defining college quality; (2) Experience with and assessments of a wide range of metrics designed to measure components of college quality; and (3) States that have developed and implemented an outcomes-based funding model. This paper distills these existing sources into the most important lessons for policymakers considering outcomes-based funding models and wanting to ensure that those models improve student progression and completion while also maintaining or enhancing quality. It begins by discussing the concept of quality in higher education, paying particular attention to the multiple and often differentiated objectives of colleges and universities, as well as possible indicators of quality factors that could be measured in different ways. Next, criteria by which to evaluate quality metrics is described. It then discusses quality metrics that researchers and policymakers have used or proposed, and evaluates those metrics by the criteria described. The paper also describes the outcomes-based funding models that states have used for tying funding to outcomes, and offers insights about how current and future quality metrics might be incorporated into those models or used to ensure outcomes-based funding models do not lead to reduced quality. It closes with overarching recommendations based on the existing evidence.