Trends affecting higher education in Australia, issues relating to selection and admission, and difficulties that many students face during their first year in college are discussed. Declining enrollment trends and an over-supply of graduates in a number of fields, especially some science fields, are discussed. A shift of emphasis away from heavily vocational courses is predicted. Problems with the use of the high school certificate as a selection criterion, the need for deferred entry schemes to allow students to identify their interests, attitudes of young people toward higher education, and the interest of older people in gaining access to higher education are discussed. A consequence of the poor quality and quantity of information available to applicants prior to entry to college is the unrealistic character of the aspirations and expectations of many first-year students. Many students appear to be unable to make a psychologically smooth transition from high school to university or to cope with the continuing demands of advanced study. Recommendations are offered to improve some of the identified problems. (SW)