What is the current financial condition of Illinois independent colleges and universities? What changes have occurred in the past five years, and what are the prospects for the immediate future? Have independent colleges and universities been able to maintain or improve quality in the past five years? What has been the impact of state programs to assist nonpublic institutions? Should they be modified or expanded? What conditions are necessary to preserve a strong nonpublic sector in Illinois higher education? What are the implications of enrollment and economic trends for independent colleges and universities? What is required to assure that the nonpublic sector is able to continue to provide a high level of service to the people of Illinois? A discussion of these issues is presented along with a brief outline of the role of nonpublic institutions in the total structure of Illinois higher education. The nonpublic higher education system in Illinois is found to be sound. But while public participation in efforts to preserve these institutions is necessary, strong institutional initiative is absolutely essential if institutions are to recover financial stability. (Author/KE)