The first institutions of higher education in California were private ones. Currently there are sixty accredited baccalaureate independent institutions in the state, and California reaps many benefits from them. For example, 25 percent of all students attending four-year institutions are enrolled in independent colleges and universities, which generates no direct expenses to taxpayers. Independent universities are distinguished by their excellence. McCaffrey explodes the myth that students at private colleges come from wealthy families and do not need financial assistance. Compared to the public system, more undergraduate students in private colleges borrow money, and more receive scholarships and grants. Problems facing private colleges and universities include financing, the decreasing pool of prospective students, and the tuition gap caused by inflation. Most private institutions are dependent on tuition for their income--as much as 70 percent of total income. McCaffrey goes on to discuss future plans, duplication of facilities, and state assistance programs.