This study examines key aspects of the cost-effectiveness of private nondoctoral (PND) colleges as providers of baccalaureate degrees and explores how states might feasibly make better use of these colleges to produce more degrees efficiently. The study looks at degree production and cost in the PND sector relative to other higher education sectors, focusing on the most comparable public institutions. PND colleges and universities have a 22 percentage point edge over comparable public institutions in four-year graduation rates and a nearly 12 point advantage in six-year graduation rates, and they hold a significant advantage for all subgroups. Moreover, PND colleges retain students initially interested in STEM and health to degrees in those majors at rates (41 percent) approaching twice the rates of public doctoral and nondoctoral institutions (24 and 23 percent, respectively). The findings of this study demonstrate that private nondoctoral colleges and universities are not only more efficient producers of baccalaureate degrees than their public counterparts, but they consume substantially fewer taxpayer resources in the process. As policy makers seek to make wise investments in higher education in the context of constrained resources, the PND sector merits particular consideration. The following are appended: (1) Constructing the Matched Comparison Groups; (2) Unmatched Private Doctoral Colleges; and (3) Tables.