State policies developed since 1960 that affect independent higher education are reviewed in light of new social, demographic, political, and economic conditions. It is proposed that policy formation should be guided by two factors: the general state objectives for postsecondary education, and the role intended for independent institutions in meeting them. Examples are given of statewide planning systems that emphasize the quality of the relationship between state government and the independent sector. Five relevant state planning issues are identified and discussed: (1) the fiscal relationship between state government and independent institutions; (2) resource sharing between public and independent sectors; (3) the independent sector's involvement in policies relating to adult education; (4) policies relevant to the role and scope of institutions as they relate to the nonpublic sector; and (5) declining enrollments. The appropriate state role in financing the independent sector is examined, with reference to student aid, direct institutional support, and the issue of accountability. A list of references is included. Appended is an outline of support for independent higher education by the individual states, divided into these categories: direct institutional aid for undergraduate education, categorical and noncategorical; student assistance to independent college students (need-based and non-need-based listed separately), and student assistance for state and independent college students (primarily need-based). (MSE)