This study related to the HE finance system aims primarily to systematically identify, summarize, examine and critically analyze the key challenges and constraints confronting HE finance as investigated in the research on this subject and propose solutions for further improvement. The findings from the defined sample of 24 relevant studies showed that major constraints and challenges facing HE financing certainly affects the flow of adequate finance provided to HEIs, including brain drain, existence of a gap between educational outcomes and labor market, reliance on policy learning and dependency on others, financial crisis, shortage of governmental resources, and poor participation of the private sector and civil society. The constraints and challenges were identified based on insightful theoretical constructs that highly characterized by principles and concepts which may not allow us to practicably develop a clear understanding of how to inspire the development of HE finance that would be a concern of policymakers and speedily acts on policy-making. However, the integration of such theoretical constructs (or others) and the introduction of serious attempts or thoughtful scenarios towards practical applications are mostly ignored. The need to acknowledge the constraints associated with limits on finance is fundamental for declining the hazardously high levels of unemployment for a sustainable economic growth. Finally, quantitative and mixed method research designs, and cross-sectional and panel analysis data are recommended to assess the influence of the HE finance systems and to identify the best opportunities and ways to meet challenges confronted by the countries, given their social and political paradigms.