For the second consecutive year, the economy and state fiscal conditions continued to improve, offering some relief in student charges and financial aid at public colleges and universities in 2005-2006. Tuition increases have shrunk to single-digits, but concern is still high regarding enrollment growth, employee compensation and benefits and infrastructure upgrades. At the state and federal levels, student aid funding is an area of concern as the number of eligible students continues to rise and the gap between tuition prices and available aid widens. Looking ahead, policymakers will again focus on tuition levels and the tuition-setting process, especially as it pertains to access and college affordability for low-income students. Reauthorization of the federal Higher Education Act (HEA), entering its fourth year, is likely to result in additional tuition-related reporting requirements for institutions. Aid issues also will continue to present challenges for students and their families. Higher interest rates and modified repayment benefits in the federal student loan programs will place significant pressure on borrowers, compounded by cuts in grant programs. At the state level, lawmakers will debate aid priorities (such as need-based vs. merit-based) as they cast a wary eye to health care, K-12 education, and other competitors for resources. The following are appended: (1) Selected Student Charges for Undergraduates at AASCU Institutions, Academic Year 2005-2006; and (2) Selected Student Charges for Undergraduates at NASULGC Institutions, Academic Year 2005-2006. (Contains 5 tables and 3 figures.)