In 2008, Iran had over 3.5 million students enrolled in universities. Some 1.7 million in various programs in Islamic Azad university and the remainder in State universities. In addition the new enrollment numbers for the academic year 2004 were 290 thousand in Azad universities, and 250 thousand in state universities. Iran has 54 state operated universities, and 42 state medical schools. These are primarily the top choice for students in national entrance exams, and have the largest and most prestigious programs. There are 289 major private universities operating as well. In addition there are over 40,000 students engaged in master's programs and 20,000 students in PhD programs. In all these schools, except for private universities such as the Islamic Azad University system, tuition and room and board is mostly paid for by the government. The universities themselves largely operate on state budgets. There are also institutes like Payame Noor University that offer degrees remotely or online.
Some schools offer degrees in conjunction with European universities. The International University of Chabahar for example offers programs under the guidance of London School of Economics and Political Science Goldsmiths University of London, and Royal Holloway. Other schools such as the Institute for Advanced Studies in Basic Sciences in Zanjan, have close collaboration with The International Centre for Theoretical Physics in Trieste, Italy for workshops, seminars, and summer schools. The Iranian government also offers intensely competitive but fully paid scholarships for successful applicants to pursue PhD-level studies in several foreign countries, mostly Great Britain.
By early 2000, Iran allocated around 0.4% of its GDP to R&D, which ranks it "far behind industrialized societies" and the world average of 1.4%. By 2009 this ratio of research to GDP reached 0.87% and the set target is 2.5%.