Policy assumptions, concerns, and recommendations from the leaders of independent colleges and universities are offered to contribute to the development of a public policy for higher education in North Carolina. The independent sector differs from the state sector in patterns of funding and governance. Benefits provided by the independent college are described, and information is provided on enrollment, costs, programs, and facultY and student quality in the 38 accredited independent colleges and universities. A state higher education policy of planned diversity, with autonomous institutions in a coordinated system, is advocated. A balance must be found between the two extremes of a command-and-control and totally free market system. An incentive system is favored whereby more and better information and an equitable percentage of student support will allow the consumer the option of several choices. Institutional boards of trustees provide the necessary mechanisms for quality control, with the ultimate accountability resting in the General Assembly's authority to withhold support from students attending institutions with unsatisfactory practices. Planning principles, financial trends and indicators, and projections for enrollment and financial support are discussed. Recommendations are offered on enrollment, funding, and planning. An inventory of the academic, occupational, and technical programs offered at North Carolina independent colleges and universities is appended. (SW)