In this study, we investigate three important aspects of higher education in Latin America and the Caribbean: quality, variety, and equity. A good higher education system offers quality, variety, and equity to maximize students’ potential given their innate ability, interests, motivation, and academic readiness at the end of high school. Since people differ in these aspects, and the economy needs various types of skills, a variety of offerings allows students to find their best match. A good higher education system trains engineers as well as technicians— economists as well as administrative assistants. In addition, a good higher education system offers quality programs that maximize students’ potential, given their best match. Because the mere availability of variety and quality does not guarantee students’ access to or success in them, a higher education system displays equity when students have access to equal opportunities.