There are 39 private colleges and universities in North Carolina. In 1974, 56% or 24,188 of the total undergraduate enrollment at these institutions were residents of North Carolina. The state has a policy of general financial assistance to the private sector amounting to $200 each academic year for each full-time resident undergraduate enrolled in these institutions. The institutions are obligated to match these funds. This report provides an overview of the private colleges and universities and the present state policy toward them as well as the contributions of these private institutions to the state while outlining their needs. These institutions have made it clear that state assistance should be in the form of aid to students and not aid to the institutions. The report recommends the establishment of a Tuition Assistance Grant program which would provide aid to needy North Carolina undergraduates to assist them in meeting tuition charges to attend an accredited private college or university which they select and to which they are admitted. The funds appropriated for the Tuition Assistance Grant program would respond to the problem of enrollment difficulties caused by the tuition differential between public and private institutions. (Author/JMF)