The previous answer of Heidelberg, Germany is wrong.
Since Heidelberg was founded in 1386 ( http://en.wikipedia.org/wiki/Ruprecht_Karl_University_of_Heidelberg ) and the University of Cambridge is...
No, its either University of San Carlos or University of Sto. Thomas (UST was established in1611, but USC was established in 1595. That makes USC as the oldest but they closed because of world war,...
The University of Bologna, in Italy, is the oldest degree granting university. It was founded in 1088. The oldest in Britain is Oxford. The oldest in America is William & Mary.