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Preface
I
\"he Carnegie Council on Higher Education has had a continuing
nterest in the welfare of the private sector of higher education.
In More Than Survival (1975)， we expressed concern for the
health of the private s~~tor，\" spoke of it as \"one of the main sources
f strength\" of higher education， and regretted that \"the rules of the
game are r
In T
recommen
ow too often unfair to the private sector.\"
ie Federal Role in Postsecondar32 Education (1975)， we
ted an expansion of the State Student Incentive Grant
(SSIG) program of the federal government and pioneered in
proposing a federal program of tuition equalization grants.
In Low or No Tuition (1975a)， we were concerned with the
tuition gap between private and public institutions.
In The States and Higher Education (1976)， we set forth， as one
of our five major concerns， the preservation of the private sector. We
noted its great contributions to diversity and to excellence.
This present report comes after the realization， in the early
1970s， that the financial situation of many private institutions of
higher education was precarious and after early efforts of the states
(and the federal government) to provide assistance. It precedes what
will be the intensified problems of the 1980s and early 1990s. It seeks
to present the situation as it now exists， to evaluate the programs
undertaken to date， and to make recommendations for future action.
We are concerned here chiefly with the responsibilities of the
states toward undergraduate education within nonprofit private
universities， comprehensive institutions， and liberal arts colleges.
Since graduate study and research activities within universities are
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