Most economists expect the current economic downturn to be one of the most severe since World War II. In fact, there is a very real danger that the changing circumstances of students, families, state and federal governments, and educational institutions could interact to significantly diminish educational opportunity in the United States. The most immediately visible problem created by the collapsing economy is that constrained resources reduce the ability of students and families to pay for college and reduce the capacity of colleges and universities to provide the financial aid students need. The authors suggest that finding ways to meet this demand is important not only for humanitarian reasons, but also because helping people who have trouble finding jobs during the recession to enroll in school is good economic policy. Helping people enroll who are having trouble finding jobs during the recession not only reduces the excess supply of labor; it also represents a great opportunity for investment in human capital. The authors discuss the role of state and federal governments in maintaining financial aid and in helping individual institutions weather the current recession. They stress that federal government should help both states and institutions find adequate resources for financial aid, but it also must help address serious capacity issues at broadly accessible public and private institutions.