THE TRUE PRIVATE COST OF A “FREE” UNIVERSITY EDUCATION: A COMPARATIVE STUDY

The ostensibly free university education in Greece actually has several private costs. A comparative research design was used to compare Greek families' private expenditures for university education in 2014-2015 to families' costs for the same education in the year 2000 to determine whether there have been any changes during ensuring years. Data were gathered from a 2014-2015 survey of a random sample of over 2.300 Greek first-year university students and compared to results from a similar survey of over 3.000 first-year university students conducted in the year 2000. Income elasticity of demand was the theoretical framework used to examine and compare results. As with the older survey data, it is shown that despite the “free education” supposedly available in Greece, families actually still spend more than the state in preparing students for and supporting them at a university. It is also demonstrated that lower-income families spend a higher share of income on a university education for their children, a discrepancy that has grown over the past 13 years. Finally, it is shown that private expenditures for a university education appear to remain a necessity in Greece, with income elasticity calculated at between 0.2 and 0.3. Results suggest the need to reallocate the Greek university budget to help relieve the financial burden on families of lower-income students. Results also suggest the importance of reducing the Greek emphasis on expensive preparation of secondary students for national university entrance examinations.