The psychodynamics of learning and teaching at a time of changing funding arrangements and priorities are explored and discussed through students' accounts of their experience of university. The contextual, organizational and socio-political characteristics implicated in these psychodynamic processes are considered. Among the psychodynamic issues that emerged from students' accounts were organizational distancing, expressed in the physical and symbolic distance between students and teachers as well as a perceived distance between lecturers and their teaching responsibilities, and transference evident in the students' struggle between dependence and independence.