The paper first makes a brief review of the history of higher education in Chile and then goes on to analyze the consequences and repercussions of the legislation that, starting in 1981, introduced major changes to the structure and functions of higher education establishments. After examining some pre and postgraduate figures, the authors emphasize that the country's main strengths and achievements include increased coverage and the process of quality assurance. However, they also point out different problems which originate primarily in the financing methods and failures in coordination between secondary and higher education. They finish pointing out a series of challenges that higher education will have to deal with in the coming years.