Distance education (DE) is no longer an option that institutions of higher education might consider, but has become a reality that must be intelligently constructed and managed with dwindling resources. In California, DE has been recommended as a solution to deal with the state's postsecondary financial crisis. As the University of California and California State University systems are forced to turn away more students, unenrolled students will end up at the state's community colleges and many will be served by DE programs. As of 1994, the California Community Colleges enrolled 93,000 students annually in DE courses, accounting for 7% of their total enrollment. Eventually, as the numbers of students increase, undergraduate DE at universities may eventually be required as well. Unfortunately, the proposed programs in California are money- and job-saving efforts designed to accommodate institutional needs and do not address student needs, such as interaction with other students on campus. To reduce potential student problems while implementing DE programs, the following recommendations should be considered: (1) DE should target upper-division students wherever possible since research has found that involvement in the first year of college is extremely important for students; (2) participating in a DE program should require a minimum grade point average; (3) the entire course should not be taught via DE; and (4) an administrator who is aware of research and technology should oversee the implementation of DE programs. (TGI)