According to a post by Josh Keller of the Chronicle of Higher Education, "Some 40,000 students will be unable to attend the California State University system in the next year and a half because of enrollment cutbacks." Keller's post goes on to explore the specific situation at San Jose State:
For the first time in memory, the roughly 1,300 community-college students who expected to transfer to San Jose State next spring are having to make other plans.
In my opinion the cutbacks in higher education are the economic equivalent of being a farmer and eating your seed corn in a drought. When the economic weather improves we will have nothing, nobody, to plant in the jobs that would otherwise be created. It is hard to see any good coming from any of this.