Issues concerning state planning and policy toward proprietary schools are considered, with a focus on efforts of Illinois to relate to the proprietary sector in such areas as coordination and planning, student financial aid, and the approval of schools and programs. States that try to integrate the proprietary sector into their planning activities encounter at least two related difficulties: multiple state agencies have varying responsibilities for different kinds of proprietary schools and programs; and statewide data on proprietary schools are very limited. The Illinois Board of Higher Education and other state agencies have statutory responsibility to approve new degree-granting institutions, including proprietary schools, and new degree programs offered by these schools; and to regulate proprietary schools that prepare individuals to follow a trade, artistic occupation, or professions not subject to licensing or registration. The following topics are considered in depth: state student financial aid and proprietary school students, and state level review and approval of proprietary school programs. Appended is information on statutory responsibilities of the State Board of Higher Education and the structure of higher education in Illinois. (SW)