Description: In the Finnish education system, higher education operates in two parallel sectors, universities and polytechnics. This paper is based on a follow-up study in which the dual higher education system is considered from the viewpoint of the applicants' educational demand. The aim of the research was, thus, to investigate 1) how polytechnic and university education meet young people's educational goals, and 2) how young people see their own educational choices retrospectively. The building of effective educational system has been one of the main targets of higher education policy in Finland as well as elsewhere in Western Europe (Neave 1990, 105-106). According to Raivola, the effectiveness of education concerns the relationship between the supply of and demand for education. The question is: How and to what extent are the clients' needs fulfilled? Are educational facilities available for those who seek them? Are clients pleased with the services they are offered? (Raivola 2000, 163.) Methodology: The data were gathered by means of two questionnaires in 2001 and 2003 from 1 134 higher education applicants. They were asked by both structured and open-ended questions about their study preferences, the application process and its results, and their experiences of studying in polytechnics as compared with studying in universities. The data were analysed by statistical methods. Conclusions: The findings indicated that the university was the more popular choice of higher education sector for the applicants: 60 % preferred university, 40 % polytechnic. As a result of the selection process, however, 41 % of the applicants ended up in universities and 39 % in polytechnics; some (13 %) of those who gave preference to university in fact accepted a place at polytechnic. However, they did not give easily up their first choice. One fourth of them transferred to university during next two academic years and more than half (61 %) planned on applying for university later. Those students whose university preference was gratified were pleased with their choice of higher education sector. Notwithstanding, 24 % of this group transferred to some other field of study of study programme within the university. After one or two years of studies 30 % of all the students were absolutely sure that they had made the right choice. 56 % felt fairly sure of their choice, and 14 % were not sure. There was no statistically significant difference between university and polytechnic students. Generally, the students were satisfied when they found their studies interesting and felt that they had succeeded in making the right educational choice. The university students in particular valued the expertise of their teachers. The polytechnic students were specifically pleased with the practical and work-life orientation of their studies. Many of university students, in contrast, thought that their studies were too remote from working life and that only a little of the knowledge on offer would be of use in their future occupations. For both polytechnic and university students, the main source of dissatisfaction was poor didactic and pedagogical skills on the part of their teachers. In the application process, the respondents mostly criticized the lack of relevant information about educational opportunities. After starting their studies, 59 % of the respondents considered that when they had applied their knowledge of the contents of their education programme had been poor. In addition, they felt their knowledge of the prospective employment and professional placement opportunities after graduating had been inadequate.