One of the major demands arising out of the movement of the junior college is that of increased space for junior college graduates in baccalaureate awarding institutions. In the state of Texas the 4-year higher education institutions do not have the facilities to accommodate this increasing number of students. Thus, the state is faced with 2 alternatives: (1) increasing the number of 4-year colleges and universities; and (2) creating upper-level institutions that provide programs for the last 2 years toward a baccalaureate. After investigating the role and performance, advantages and disadvantages of upper-level institutions it is evident that the establishment of upper-level institutions promises to be the most economical way to meet the need to furnish additional baccalaureate degree opportunities to Texas students. (HS)