Decreasing enrollments of American colleges and universities of all types and geographic regions are described that have resulted in many deficits since 1968-69. Contributing to the financial squeeze are inflation, unionization, and sharp reductions in the level of scholarships and research support. Studies of four-year liberal arts colleges confirm the continued growth and frequency of deficits, despite much publicized and feared budget cuts. Policies of raising tuition, increasing the total amount of financial aid, and setting higher admission goals had the net effect of spending more money and attracting fewer students. These problems are seen to be not merely financial but managerial difficulties. Key trends are outlined that must be considered in making five or six-year plans, with annual reviewing and updating. Suggestions are offered for cooperative efforts on the part of admissions staffs, business offices, and students to carry out appropriate policies that will help solve the financial problems. (LBH)