The real university cost in a “free” higher education country

Using a sample of over 3000 first year university entrants in Greece, we investigate the time and expense incurred in preparation for the highly competitive higher education entry examinations, as well as what students spend privately while attending university. It is shown that in a constitutionally “free for all” higher education country, families spend privately more than the state in order to prepare for the entrance examinations and while studying at the university. In addition, poorer families spend a higher share of their income on the education of their children. Private education expenditure seems to be a necessity for all, the income elasticity being of the order of 0.2-0.3.