Purpose – to evaluate the effectiveness of education financing from different sources and different methods. This article aims to evaluate the effectiveness of higher education financing by different methods in Kazakhstan. Such methods as grants allocated through Commission by the results of United National Test, Voucher system and Educational Loans. The education concept is widely used in the labor economics and these issues are considered by human capital and economic development. In recent decade more and more Kazakhstani enrollees strive to go to the foreign universities, because the local Universities and colleges have the low quality and conditions. Most employers do not even consider the graduates of local universities unless exceptional skills. However, those high-school graduates that get grants and scholarships and those who enter on a paid basis should receive the competitive education for further employment. Methodology – based on neoclassical growth theory, uses deductive approach through conducting semistructured interview. There were considered many official reports by World Bank, OECD countries and Reports of Ministry of Education and Science (MOES) of The Republic of Kazakhstan. On the basis of “Constructing Knowledge Societies: New Challenges for Tertiary Education” Report that summarizes that tertiary education as an “important in building capacity and reducing poverty”. Their studies have a great influence on the attractiveness of foreign investments into developing countries.First of all, people should understand that tertiary education also includes training courses for teachers, doctors, engineers, scientists and others. The Report of World Bank also highlights that a huge part in Tertiary education system plays colleges, community colleges, research laboratories, distance learning centers and all of them that has a relation to the development and prosperity of individuals and as a consequence the developments of the country. Originality / value – Improve Higher education quality through highlighting theImportance of financing Findings – the majority of the respondents supported the idea of volunteer financing from organizations and providing loans from banks with low interest rate [ABSTRACT FROM AUTHOR]