Factors that have intensified concern with state licensing and oversight of postsecondary education, the current state of licensing and oversight, and areas that need to be addressed are considered. Conditions that have led to concern with state licensing and oversight include an enlarged number of institutions, the increase in federal and state student aid programs, the consumer concern for fair practices in postsecondary education, and the impending decline in the traditional student age group. Increased incentives to adjust educational realities in order to increase enrollment could make state oversight of traditional colleges and universities an important concern. Forty-eight states are exercising some sort of licensing authority over private nondegree-granting institutions, and 43 states have licensing authority for private degree-granting institutions. Additionally consumer protection laws have been enacted in states to prevent unfair or deceptive practices. Model legislation for state laws to improve licensing and oversight is outlined that was designed by a task force of the Education Commission of the States. A problem area is the many new degree-granting institutions that operate across state lines and offer a range of nontraditional programs. It is not evident who should accredit these educational offerings. Another problem is the exemption of certain kinds of institutions from regulation. There is also a need for state licensing agencies to coordinate their efforts with other state agencies, including the attorney general's office and state consumer protection agencies. Steps that can be taken to improve state laws include raising the consciousness of governors and legislators regarding the need for oversight of postsecondary education. (SW)