The relationships between state government and private higher education are considered with emphasis on Ohio. It is noted that state colleges have received land and financial support from private sources and that there have been reciprocal arrangements of public support given to private colleges. These arrangements include different types of tax exemption, state revenue bonds for capital projects, student loans, and contracts between private colleges and public community colleges for complete services. Examples of this type of contract are described. In regard to policy considerations, it is claimed that quality exists in both the public and private sectors, and that as times and needs change, colleges in some areas may need to be established while colleges in other areas may not be needed. Some of the recommendations adopted by the Ohio Board in its December 1975 policy statement are criticized. Eligibility for student financial aid and the state role with respect to private higher education are addressed. (SW)