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The year 2009 saw higher education setting lofty goals, being hit with harsh reality, struggling to cope financially and facing major shift in policies in Washington. President Obama also dreamt of an America that would lead the world in education by the year 2020. There was a major reshape of the Federal Student Loan as billions of stimulus funds were poured into student financial aid and research by the Congress.

While all this gives a very rosy picture, the practical reality was something completely different. In California, you can find a major unrest among students, faculty, activists and parents. Students are crammed into classrooms that are filled much beyond capacity. There are tuition hikes that parents are not able to digest. Activists add to the confusion by damaging property and occupying buildings.

For the first time in the history of the university, students who are well qualified were turned away due to massive budget cuts and are consequently facing public ire. This global recession has affected almost all states and not only California.

However, California is the state that experienced the maximum budget cut displaying accurately the current trend in higher education demand. California is the state that brought to prominence the sad truth that during prosperous times the education system flowers and prospers too but is unable to handle a shortfall and manage the situation when most required.

Thousands of public college staffs were laid off much to their consternation. The reason for this again was the severe budget shortfall. Colleges and universities had no option but to pass this deficit on to the student’s shoulders through a steep hike in tuition fee. Private colleges had to face the challenge of a fall of at least 25% endowments.

Community colleges faced a different kind of a challenge. There was a surge of demand they could not accommodate due to the attention they were receiving from the government, philanthropists and press fostered by the ambitious 2020 goal of President Obama. The demand was so much that colleges had to run classes through the night too.

Things were easier for the for-profit colleges as they had access to an expanded Federal aid for low income students and had the capacity to cater to the job retraining demand. However, their problem arose in the form of tighter government regulations and their enrolment process under tight scrutiny.

Harvard had to cut back on cookies at faculty meetings and hot breakfast for students much to the delight of the news hungry media. Colleges in fact have started encouraging the publishing of such stories to bring attention to how well they are retaining core experience for students even while protecting financial aid.

Students who land public interest jobs or jobs with low salaries benefit from repayment options that are income based. Veterans are happy with from the increased benefits offered through the recent GI bill.

The situation is still in transition and no one knows how long it will take and which direction things will turn towards.