I think many colleges will indeed disappear.  It's only natural that the college bubble will burst as the number of 4 year colleges has exploded in the last 50 years.  But I think universities will be relatively safe; at least the big, prestigious ones.<p>Universities only partially exist because of education.  Most of the hiring is done based on research, and a lot of the funding comes from grants.  Yes, part of the money comes from the students.  But the movement of the Ivies towards needs-blind admittance in addition to grant-only financial aid (i.e. no loans) means it doesn't matter as much as it does to other universities.  And of course, the Ivies have that intangible and resilient allure of prestige.  The upper class will always pay for that.