A study was undertaken to assess the impact of existing state policies toward private higher education on enrollments, finances, autonomy, academic freedom, and other conditions of private institutions. The study included a survey of the presidents and their staffs of 230 institutions, site visits to 28 colleges and universities in five states, and extensive interviews with state officials in five states. Contents of the report include: general considerations in assessing the state role; the economic position of the private sector (enrollment trends, the tuition gap, financial status, vulnerability, and outlook); state programs now in place (characteristics of student aid programs, the California and Illinois plans, impacts of state programs, tax exemptions, and perceptions of state programs); special concerns about public policy (impacts on income groups, impacts on public institutions, student mobility and migration, coordination and planning, complementary federal programs, federal state cooperation, complex problems and complex solutions, broad alternatives, and the need for moderation); and recommendations. (MSE)