Consensual sexual relationships between students and faculty have traditionally been viewed as private matters and have been ignored by university administrators except in cases that resulted in sexual harassment claims. Due to increasing sexual harassment litigation and the liabilities associated with such relationships, universities have developed policies to limit relationships between faculty and students and to acknowledge the power differential inherent in such relationships. These policies, however, differ between universities, causing confusion among the university community as to what is considered acceptable and ethical behavior. Using a sample of 55 universities, this analysis attempted to determine (a) the level of acceptability of such relationships, (b) the language or absence thereof addressing power differentials, (c) liability issues associated with these relationships, (d) reporting requirements, and (e) whether clearly outlined sanctions exist when/if such relationships occur. Future directions for research and policy are also discussed.