When the stock market plunged 778 points last week, losing almost 9% of its value in one day, higher education responded in an uncharacteristic way: It began to buckle. Colleges have often considered themselves recession-proof. However, last week's events compounded an already difficult year for many institutions, which have suffered from declining state support, tightening credit, and losses on endowment earnings. This article highlights the impact of the financial crisis on higher education and describes how colleges respond to the crisis.