Why does my car not shift into neutral or anything above third?

I just purchased a used 2005 Saturn Vue with under 80k miles. Last night, it drove just fine. Clutch felt fine, gears shifted easily, but not too slippery and no burnt clutch smell or engine revving. This morning, my husband took the car out and while driving, the gear shift went loose. Now, the car won't shift at all. You can move the knob from first to second, but there is no defined gear. If you let the knob go, it falls into second. You cannot move up to third or any other gear. We can't feel neutral either. It is being towed to the shop, and it's under warranty but I just wanted to know what you guys thought. I basically don't want the dealer to feed us a line of crap or just do a minor fix that's going to be a huge problem in the near future.