In most states, postsecondary education financing policies are formed in highly politicized environments. States fund public institutions, set tuition levels at those institutions, and award student financial aid without extensive reliance on either systematic policy research or integrated postsecondary policy development. Dramatic, strategically chosen changes (whether in the direction of "rationality" or otherwise) are therefore rare.For example, in the absence of clear policy guidelines, states tend to change tuition levels for public institutions either incrementally, in an across-the-board fashion bordering on herd instinct, or reactively, in an attempt to maintain certain price relationships between public and private or four-year and two-year institutions (Anthony and Herzlinger, 1975;Rusk and Leslie, 1978; Gilmour and Settle, 1984). These problems are present not only in the setting of tuition but also in state student aid policies and state institutional funding policies. All too often, progress in one of these policy domains is independent of action in another. The recent implementation of formula funding approaches in most states is a welcome development, but such approaches have no necessary relation-R. H. Fenske (4.).