Historically, tuition and mandatory fee rates of all North Dakota University System (NDUS) institutions (except the 2-year campuses) have been less than their regional counterparts. Average tuition and fee increases at NDUS institutions were significantly higher than their regional counterparts in 2004-05, 2005-06 and 2006-07, as a result, the gap between tuition and fee rates at all NDUS institutions, except the 2-year campuses, and their regional counterparts has narrowed significantly in recent years. At the 2-year campuses the gap has widened significantly since 2003-04 with NDUS two-year campus tuition and fee rates, on the average, about $660 more than their regional counterparts. Funding for the needs based state grant program has not kept pace with tuition increases and has declined as a percent of estimated tuition collections, from 2.19 percent of estimated annual tuition collections in 1989-91 to 1.82 percent in 2007-09. However, increases in state aid currently under consideration by the legislature could help begin to address this situation. This report outlines a number of factors to consider when examining the affordability of public higher education in North Dakota. Five appendices are included: (1) History of Federal Financial Aid; (2) NDUS Two-Year Campus Combined Loan, Grant/Campus-Based: Financial Aid Information; (3) NDUS Two-Year Campus Average Student Loan Indebtedness by Year; (4) 2007-08 Tuition as a Percent of Income: Comparison of NDUS Campuses to Long-Term Finance Plan Peer Groups; and (5) A Comparison of North Dakota, Regional and National Averages 2008-09 Resident Undergraduate Tuition and Required Fees. (Contains 13 tables, 2 figures and 1 footnote.)