An overview of an ongoing study of state policies and private postsecondary education is presented. It is suggested that higher education should be viewed in the context of a state's practices in other human service policy areas (e.g., social and health services). Three types of state policy postures are emphasized: laissez-faire, market competitive, and direct regulatory. Four areas of state policy that are centrally important to private colleges are also covered: access/choice, direct institutional aid, planning and program review, and information policies. Policy areas and postures are illustrated by the cases of California and Indiana, which were studied in detail. The case of New York State is used to illustrate the adaptation to changing demands for degree programs and the competition between public and private colleges for public funds. Also considered are statistical evidence of relationships between state aid programs and indicators of access, choice, and private sector health. The objective is to compare changes in enrollment patterns and indicators of private sector fiscal health across time periods and across states representing different levels of policy commitment to the private sector and its students. (SW)