This study examined the correlates of high school students' preferences in their senior year to attend private or public higher education institutions, and especially the effects of student sensitivity to tuition costs and to financial aid. The data analyzed were from a longitudinal study (n=482) of student college choice. The dependent variable was student preference to attend public or private institutions; the independent variables were student background characteristics, student academic characteristics, and student sensitivity to tuition and financial aid. Results indicated that student preferences to go to private institutions were influenced jointly by family, academic, and financial factors. Mother's education, particularly postgraduate education, was significantly and positively related to student preference for a private institution. Other family background characteristics, including family income, were not related to student preference for type of postsecondary institution, but students with better academic preparation were more likely to prefer private institutions. Student sensitivity to tuition and financial aid were related differently to choice of private institutions students interested in private institutions were less concerned about tuition costs but more interested in financial aid. (Contains 37 references.) (DB)