Public colleges and universities in the U.S., subsidized directly by state governments, are capturing an expanding share of enrollment. At the beginning of this century, more than 80 % of students were enrolled in private colleges and universities. By the middle of the century, the figure had fallen to about 50 %. From the 1960s on, this trend has accelerated. By 1990, the composition had reversed itself from the beginning of the century, with four out of five students enrolled in public universities. During the three decades from 1965 to 1995, the public sector absorbed more than 86 % of the higher education enrollment increase.

The evidence is strong that the state government policy to create a system of state-run colleges and universities that drastically underprices private institutions of higher education has resulted in a threat to the independent higher education system. This unquestioned march away from private higher education to government control is inefficient and harmful to a civilized society.

Private colleges and universities provide an educational experience quite different from state-own institutions. Private colleges are much smaller, with an average enrollment of around 1,500. The average enrollment for public colleges and universities is more than four times greater, approaching 7,000. Of the 120 largest institutions of higher education in terms of enrollment, all but eight are public. Eighty-five percent of colleges that enroll less than 1,000 students are private.

Students at private colleges and universities are more likely to interact with faculty and more satisfied with classroom instruction. They complete their degrees at a much higher rate than their counterparts at state-run institutions. Private institutions grant more doctorate and first professional degrees than state institutions, despite their much smaller enrollment.

Aside from offering a different type of learning environment, a system of private colleges and universities is much more efficient than a government-run and -planned system. State governments have created a situation where a vast majority of students attend a college for a price that is far below the true cost of providing their education, and the educational service is not controlled very well by those who own the institution.