The link between student charges, enrollment, financial aid needs, and institutional revenues at California community colleges, the University of California, and the California State University is examined. After reviewing the public and individual costs and benefits of higher education, attention is directed to current institutional charges for resident and nonresident students and trends in present and past charges in both current and constant dollars. The following bases commonly used by states in determining appropriate levels of student charges are considered: (1) a predetermined percentage of the cost of instruction in different types of institutions, (2) the instructional level of students, (3) a comparison with charges at other institutions, (4) the distinction between credit and noncredit courses or between regular and extension offerings, (5) differences in the future earning potential of students with different majors, and (6) anticipated budget shortfalls. The impact of student charges on the demand for higher education is also addressed, along with the components of a student change model, and projected changes in charges based on the model. Comparative data on student charges for institutions in California and other states are included, along with an extensive bibliography. (SW)