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Some of our best and brightest are being turned away from tertiary study.
Packed lecture theatres and a lack of funds mean potential university students can't get a foot in the door.
When Tertiary Education Minister Steven Joyce announced a new performance-based funding model earlier this year, he said it would help students decide what courses to take and know what to expect after graduation.
But critics say it has pitched the system into crisis.
Thousands of students are being turned away, others told to take time off and some even forced to teach themselves online.
Universities claim they have no room, and the government says there is no more money in the kitty.
In February, tourism student Drew Bibby got the chance of a lifetime; to work at the Winter Olympics in Vancouver.
"I thought it would be a good opportunity to get a bit of work experience under my belt, maybe use it as part of my practical paper," Bibby said.
He took a break from uni to head to Canada. But when he returned to New Zealand in May, ready for a new term, he was in for a shock.
"I was sitting down at six o'clock listening to ONE News, and heard the news that I couldn't get back into uni," Bibby said.
Victoria University had announced it would not be accepting any more enrolments for the rest of the year, affecting more than 1500 people.
That meant he had to put the rest of his degree on hold for six months.
"That's probably what frustrated me the most. I'm doing something towards my degree, but I can't carry on in the second semester," Bibby said.
Victoria University is not alone in its decision to cut off enrolments.
AUT turned away more than 1000 students at the start of the year, Waikato University refused 470 students last month and at Massey University there will be 2800 fewer places in summer school.
And current Year 13 students wanting to go to university next year are not necessarily guaranteed a place.
New Zealand Vice-Chancellors' Chairman Derek McCormack said if students can't get into university our unemployed numbers will grow.
And he added a country with good universities is a good investment and has a good economic future.
After weeks of lobbying Victoria University has decided to let Bibby back in.
"If I hadn't kept pushing, I'd be working a crappy full time job getting nowhere," Bibby said.
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