This report seeks to explain the complex relationship between "cost" and "price" at independent private colleges and universities, and to demonstrate that federal student financial aid does not contribute to tuition and fee increases at such institutions. To support these results, 10 facts, drawn from multivariate statistical analyses of data from a recent National Association of Independent Colleges and Universities survey are noted: (1) Federal grant aid helps slow the rate of tuition growth; (2) the majority of undergraduates do not pay full tuition because of grant and scholarship assistance; (3) out-of-pocket tuition expenses have changed at a slower rate than published tuition levels; (4) tuition that families actually pay is based on financial need; (5) the difference in out-of-pocket expenses for public versus independent institutions is less than generally thought; (6) the cost of educating students is the largest determinant of tuition growth; (7) student financial aid policies are used to maintain a commitment to access and diversity; (8) the increase in institutionally provided aid is the fastest growing determinant of tuition and fees; (9) gift and endowment income help hold the line on tuition growth; and (10) institutions are attempting to reduce pressure on tuition by broadening revenue sources. (CH)