Two features mark the education sector in many LDCs today: first, education is publicly provided; and second. governments are faced with severe financial constraints. As a result, enrollmrnts are confined to low Ievels, and there is excess demand. To mitigate these adverse outcomes, we consider user charges as a means to mobilize additional resources for education. Under the circumstances that characterize most LDCs. we show that (i) families are willing to pay for education: (ii) the resources collected through user charges could finance a sizable expansion of education; and (iii) scholarships can offset the equity effects of user charges.