Education is un-separated part of the human society as old as life itself. Human societies time bytime have had vested interests in education. The societies always agree to acknowledge theimportance of education, even a large number of them fail to provide sufficient resources thatcan be used as support to educational institutions and activities. Waqf as an institution andIslamic finance instrument has a direct and un-direct effect to upgrade the capabilities of theneedy and enhance their quality of life by providing access to education facilities. Hence, theWaqf institution surely can accommodate the issue of financing for government’s educationexpenditure in its effective and comprehensive approach. Thus, the main objective of this paperis to propose the model of Waqf financing for reducing government’s education expenditure byusing cost benefit analysis. The methodology of this research is a qualitative research towardsliterature related to Waqf. The general finding of this paper shows that there is should a strongwillingness from government to devote and make Waqf institution as one of financing capitalfor education expenditure.