North Carolina is a state with a rich higher education history, which matches the diversity and number of higher education institutions that can be found there. The significant investment of both tax dollars and public support for higher education in North Carolina has created a unique environment in which public policy significantly impacts both public and private universities. The purpose of this study was to examine the effect of state policies, through institutional characteristics at North Carolina four-year public and private colleges and universities on LSES student enrollment over time. Although public universities enroll more LSES students, national trends suggest that LSES enrollment percentages are growing at private universities and declining at public institutions. The analysis found that there was no sector shift in LSES student enrollment in North Carolina from 2002 to 2009. Furthermore, the outcomes of the analysis demonstrated the influence of North Carolina higher education policies on both public and private institutions through controlling and stabilizing LSES enrollment in both sectors. Although it was anticipated that institutional selectivity and wealth would have negative effects on LSES enrollment, high SAT scores were the only selectivity or wealth related variable to have a significant negative effect on LSES enrollment throughout the decade. Ultimately, the findings discuss a special sector equilibrium regarding LSES enrollment, the product of policies that stem from state history and a unique culture of popular postsecondary support. Leslie Neal Holly [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://bibliotheek.ehb.be:2222/en-US/products/dissertations/individuals.shtml.]