IT IS ARGUED THAT, ALTHOUGH THE FEDERAL GOVERNMENT AND PRIVATE ORGANIZATIONS BOTH CONTRIBUTE TO THE PROTECTION OF STUDENT CONSUMERS, THE STATE, WITH ITS TRADITION OF LEGAL RESPONSIBILITY FOR EDUCATIONAL MATTERS, SHOULD PLAY THE PRIMARY ROLE IN THIS AREA. THE CONSUMER PROTECTION ROLES OF STATE LEGISLATURES, STATE EDUCATION AGENCIES, AND STATE CONSUMER AFFAIRS AGENCIES ARE DISCUSSED. OTHER STATE UNITS INVOLVED IN REGULATING POSTSECONDARY EDUCATION AND IN PROTECTING CONSUMER INTERESTS -- THE COURTS AND OCCUPATIONAL-PROFESSIONAL LICENSING AGENCIES -- ARE NOTED. EMERGING TRENDS IN STATE EDUCATION WITH REGARD TO RECOGNITION OF WEAKNESSES IN STATE LICENSING OPERATIONS, RESPONSE TO CALLS FOR CONSUMER PROTECTION, REGULATION OF OUT-OF-STATE INSTITUTIONS, EMPHASIS ON PLANNING, AND INTERSTATE COOPERATION ARE EXAMINED. STATE RELATIONS WITH FEDERAL AND PRIVATE REGULATORY AGENCIES ARE DISCUSSED. SUGGESTIONS FOR STRENGTHENING THE CONSUMER PROTECTION ROLE OF STATE EDUCATION AGENCIES ARE OFFERED. (LKM)