To meet its future challenges in financing higher education, Egypt has no option but to search for alternative funding arrangements. This article considers the question of how to do so, keeping in mind the need to ensure equitable access to good quality education for those who cannot afford it. To this end, the article begins by assessing public expenditure on higher education in Egypt, with respect to its adequacy, efficiency, and equity. Next, it analyzes the impacts that demographic changes, the demand for quality education, and the transition to private provision of education will have on the nature of financing higher education in the future. It concludes by suggesting alternative strategies to address the problem of financing higher education in Egypt.