The basic function of higher education is to train not only competent, but also creative human resource capable to obtain correct information in a timely manner in order to make sound decisions. Higher education in modern society is called to fulfill two basic tasks: the formation of civil behavior, i.e. the education of responsible citizens who are actively involved in social life; preparation of specialists with university degrees for different areas of national economy. Contemporary higher education is called to provide training of personnel able to perceive social trends of development of society and to take effective action to maximize the level of correspondence to various requirements and challenges of the time. We conclude that the current higher education system should not be oriented towards commercialization and extensive growth, but mainly towards qualitative restructuring and the achieving of a new level of students professionalism. The main function of higher education as an important social institution which integrates principles of social responsibility and which responds to the challenges of time is to develop a new type of culture of the society based on knowledge.