Some-100,000 students and teachers marched along the main avenue of Santiago and stopped in front of La Moneda Palace, headquarters of the government and the Education Ministry, La Tercera reported Friday.
The Chilean Students Federation and Chilean Teachers' Association planned the protest against privatization and more government investment in public education.
Protesters collided with police when authorities shot a water cannon at the crowd during the demonstration.
Chilean President Sebastian Pinera has offered an education revitalization plan worth $75 million to public universities. The groups have denied the offer.
Demonstrations for education reform started in April when thousands of students took to the streets across Chile.