This article reviews the path of funding higher education in Hungary, where funding cuts have resulted in understaffing, escalating tuition, growing student debt, and declining enrollment. Graduation rates are low, government policies favor vocational disciplines, and the system of preparation and access gives preference to students from wealthier families. There is little or no long-term planning in the sector--only short-term reactions to erratic policies and circumstances. Students who receive government aid are required to work in the country for a certain number of years--a strategy that is likely to increase rather than curb brain drain. Universities are now pursuing money from new sources, including alumni contributions and research funding, and professionalizing their middle management.