This report reviews what is known about today's proprietary schools, their role in higher education, their curricula, the types of students who attend them, educational outcomes of their graduates, and the policy issues that effect them. First, the report discusses the historical aspects of how private career schools evolved from the colonial era to the present day, and how the growth of these schools, after World War II, became closely associated with changes in federal student aid policy. Next, the role of proprietary schools in higher education is reviewed: what the outcomes of education are for their graduates compared to those from more traditional schools; how these schools are operated; and their institutional accountability. Additionally, the basic proprietary school curriculum is described, as well as its educational purpose. The report then discusses the characteristics of a typical proprietary school student, the current enrollment figures, and the educational outcomes of proprietary school graduates. Finally, the policy issues of state governments that can affect career school education are explored concerning accreditation, educational quality, unfair business practice, and protection of the state's financial interests in these schools. Contains an index and 94 references. (GLR)