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The first section of this paper serves to define the various types of costs and benefits of higher educatibn. It differentiates between private and social costs and benefits, as well as-between monetary and nonmonetary costs and benefits. It is further argued that we must look at costs and benefits that arise not only duiing or immediately after the schooling experience but also at those that arise later. The work on the impact of higher education to date is reviewed. An attempt is made to relate the results from a few studies of lower levels of education to those dealing with college. The next section focuses-on recent work of the author, in which he attempts to define measures of college quality and introduce them into an earning function. It appears that both quantity and quality of schooling are important factors to explain lifetime income patterns of individuals, even after controlling for the individual's innate ability. The two most significant measures of quality in