Nowadays the system of education is increasingly subject to commercialisation and globalisation. These processes are closely interconnected. Presently there are two types of financing of higher education: state financing and private financing of educational establishments; at the same time, the number of higher schools financed by the state, students tuition fees and sponsors is growing. After restitution of independence, such a system is functioning also in Latvia; at the same time legal, financial and other aspects of this system are still to be brought into line. This trend could be related not only with the improvement of the financial situation of higher schools but also with the possibility to attract most talented potential students internationally. The talented graduates of a higher school represent the potential and build reputation of these higher educational establishments. As a result, brain drain has become a burning issue of concern to all countries, whose best minds are lured away by higher salaries and better social guarantees.