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The expansion of the junior and community college movement in-the U.S..has created a significant problem for the traditional 4-year colleges and universities. recent report indicates that there are.more than- 250,000 students seeking to continue their educations following completion of their junior college curriculaw.and 4-year colleges do not have the facilities to accommodate these additional students..lipperlevel colleges and universities (institutions offering junior and senior year baccalaureate programs as well.as programs.leading.to master's and doctoral degrees) are seen,as one sOlution..This paper presents. a brief history.and reviews the advantages associated with:upper-level colleges, describes how.several of the institutions are capitalizing on the opportunities available for innovationi-discusses how:they are coping with-the-problems they are confronting, and offers some recommendations concerning the creation of upper-level colleges. (Author) EUEFEINATIO