Independent colleges provide diversity, foster cultural pluralism, minimize state expenditures, and serve a broad cross-section of students--including low income and minority students. The National Commission on United Methodist Higher Education identifies three basic public policy principles: recognition of the essential public service function of independent institutions and the need to preserve those services for society; maintenance of diversity in higher education by assuring the autonomy and viability of individual institutions; and alteration of public policies that inhibit students' access to institutions of their choice. The National Commission makes recommendations regarding: financial aid programs that recognize the tuition gap and facilitate student choice; restructuring of Social Security and veterans' benefit programs; continuation of tax incentives for voluntary support of educational institutions; maintenance of the tax-exempt status of educational property; state coordination of higher education; revision of government regulations that excessively burden higher education institutions; and elimination of regulations that adversely affect institutional autonomy. United States Supreme Court decisions show that the federal and most state governments can develop programs to aid church-related and other independent institutions without violating the First Amendment. (Author)