Chile's government has promised $4 billion in education reforms in response to mass student protests in the country.

President Sebastian Pinera proposed on Tuesday the formation of an education fund that will help increase scholarships and grants for students seeking higher education.

The announcement follows protests by tens of thousands of students last week in Chile's capital Santiago. Many students complain of prohibitively expensive tuition and difficult university entrance requirements.

President Pinera also faces a sagging approval rating, which has dropped from 63 percent in October to a new low of 36 percent in May.