The relationships between the public and nonpublic sectors of higher education are considered with respect to planning issues, financing issues, and accountability. Among the planning concerns are the following: to what extent should the nonpublic sector be involved in the statewide review of new and existing programs; how can resources be shared among public and independent sectors; how will the independent sector be involved in policies relating to the provision of learning opportunities for adults; and how and to what extent should the state provide financial support for the nonpublic sector. There is extensive support for need-based student aid as the primary vehicle for state support of independent higher education. Relevant questions pertain to the maximum award level, how need should be determined, and whether non-need based student aid (tuition offsets) should be available to private colleges. It is suggested that to provide relief to middle income students, it would be necessary to adjust need analysis schedules to require smaller family contributions in the middle and upper middle income ranges. It is suggested that the importance of the private sector is demonstrated by state direct, general purpose support to independent institutions, contracts for general support or for support related to enrollment of low income students, and categorical institutional grants. It is recommended that the composition of an aid program be based on a clear understanding of state goals with respect to postsecondary education, and the role nonpublic institutions play in achieving them. Other policy questions include who will monitor the accountability of private colleges and what it will involve. (SW)