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I'm getting dumped by my advisor
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I'm going into my second year of study in a bio degree program. I've been working for one guy this entire time, and my progress has been slow and not good. Last March, he signed my contract as RA (research advisor) for the summer, but not for fall classes, with an extension dependent upon my progress. I've made some progress, but not leaps and bounds.

A week ago my advisor lost funding, and we're running on fumes. I come to him today to discuss funding for the future semester, and he keeps on evading until he calls over our HR person, who finally flat out explains that my advisor will not be paying for the coming semester. He pretty much tells me it's best if I either a) drop out, or b) pay my way through a masters. He doesn't think I'll get picked up by another professor, because the school has been taking too many students on. A new group will be coming in the fall, all of whom have 1 year's pay that comes from the school as opposed to the advisor (a very big boon for the profs). Additionally, there are a few students that were accepted *last* fall, and still have no funding. Plus, I have a feeling my advisor has been complaining about me to other advisors.

I knew this was a possibility, but my advisor seemed more than peachy keen on letting me go without actually verbalizing ANY of this. Even today when I was asking if I should be looking for a new advisor due our groups' funding problems, he evaded and evaded until he called someone over from HR to say what he couldn't. All of this information comes 10 days before my qualifying exam, which decides whether or not I continue my degree. If I don't pass, I'll have little to no chance of getting picked up. If I pass on the masters or PhD, someone *might* pick me up.

What do I do?