Abstract In the paper the past of the Hungarian higher education will be presented. We will introduce the changes in the location and number of universities, the total number of students and we will also focus on the decisions of the students. This part refers to the traditional education system: How do they choose a university? What is in the center of the decision process? How important is the distance of the institution? Is there a space, where the choice is based on the comfort of the students, not on the judgment of the university? Why do they choose a university in another city, which is far away from home? These are very important questions, when we would like to find a university with full-time education, but nowadays we can see a new trend, which is the call for the online qualification and universities, we can get a diploma through online training. What is the effect of this new technology on the traditional education system? How should or could the universities react on this change? We will use the location theory and the cost-benefit analysis to answer the above mentioned questions