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Higher education in Paraguay faces a series of structural challenges that affect its quality, accessibility, and relevance to the country's social and economic development. In recent decades, the university system has expanded significantly, but this growth has not always been accompanied by a strengthening of academic regulations, teacher training, and institutional infrastructure. Objectives: To analyze the current situation of higher education in Paraguay. This study examines the main challenges facing Paraguayan higher education, including the access gap between urban and rural areas, unequal academic quality across institutions, lack of investment in research, and limited integration with the labor market. Methodology: Through an analytical-descriptive approach, historical, regulatory, and statistical trends are analyzed to understand the evolution of the university system. A theoretical framework based on Human Capital Theory (Becker, 1964), Educational Justice Theory (Rawls, 1971), and the Education for Sustainable Development Model is introduced, providing a foundation for assessing the country's educational challenges (UNESCO, 2015). Results: Data on enrollment, institutional growth, and unequal access are also included, demonstrating how public policies have impacted tertiary education. Despite regulatory advances driven by organizations such as ANEAES and CONES, critical aspects remain that require urgent intervention. Conclusion: This paper proposes a series of strategies to improve the system, including strengthening university financing, curricular modernization, optimizing scholarship programs, and implementing more equitable educational policies. Finally, it raises the need for future research exploring the relationship between educational quality and employability, in addition to studies on the impact of digitalization on university learning. With a comprehensive approach, higher education in Paraguay can become an engine of sustainable development that responds to the challenges of the 21st century.