This paper explores the higher education financing policy in Morocco in light of the central issue of equity. First, it surveys the current situation, using a critical approach to the present financing policy, and looking at the three dimensions of adequacy, efficiency, and equity. Second, it describes the principal policy challenges in financing higher education. Third, it presents several public policy proposals likely to bring changes to the financing policy in order to meet these challenges. The analysis shows that the sustainability and the equity of the current financing system are undermined by the dysfunctions introduced by the private/public split in the higher education system and the lack of a clear political strategy pertaining to the medium of instruction.