With the global recession in full effect, post-secondary education in Canada is about to face some very significant challenges. The purpose of this report is to outline the likely main effects of this global recession on the Canadian post-secondary education (PSE) sector, as well as suggest a series of measures that governments can take to help institutions survive the worst of the crisis. The most immediate challenges facing the system over the coming years include: (1) Decreasing Institutional Revenues; (2) Increasing Institutional Costs; (3) Increasing Enrolments in Colleges and Master's Programs; Declining Apprenticeship Registrations; and (4) Increasing Student Aid Costs and Institutional Need-Based Award Problems. These are a daunting set of challenges. Undoubtedly, institutions will be forced into some belt-tightening. The likeliest consequences of these actions are: (1) Hiring freezes for full-time staff and an increased use of part-time and sessional staff; (2) Reductions in Graduate Scholarships; (3) Cuts in library spending; (4) Deferring maintenance; and (5) Larger class sizes. Governments can help institutions face these challenges as long as they act now and implement solutions that will help, not hinder in the short and long-term. These actions include: (1) Pay for a salary-restructuring; (2) Don't let enrolment formulas constrain institutions from meeting the shifting demand; (3) Allow tuition increases; (4) Protect and improve the student aid programs that matter; chop the ones that don't; (5) Fund brains, not buildings; and (6) Measure what matters, ignore what doesn't. (Contains 1 footnote.)