The aim of this paper is to show the effects of the economic crisis and corruption levels of the Greek political system on the way Greek young people think and live today as well as on their academic progress. The results of a sample survey among 1350 students of the Universities and Technological Educational Institutes of Athens are analyzed. Exploratory factor analysis reveals four main effects: (a) Loss of confidence in state institutions, democracy values, political, judiciary, educational, health and security systems; (b) Psychosocial characteristics, lack of goals, prevailing sense of abandonment, widespread pessimism, negative beliefs, nihilistic approach to everyday reality and lack of self-confidence, negative influence of the economic crisis on the results of exams; (c) Substantial reduction in living expenses (especially for food, clothing, housing and entertainment); (d) Definite immigration plans by young educated Greeks and desire for postgraduate studies and settlement abroad. Cronbach’s α coefficients for factors a, b, c, d, are: 0.88, 0.72, 0.68 and 0.42 resepctively. Logistic regression reveals the following significant predictors of lack of academic progress as a result of the economic crisis: negative psychological attitudes, loss of confidence toward state institutions, increased living expenses and strong desire for immigration. Also, a second logistic regression model reveals the following significant predictors of visiting a psychologist or a psychiatrist as a result of the economic crisis: job insecurity, sense of abandonment, pessimistic feelings, nihilistic feelings since there are no social values and strong desire to emigrate as a result of economic circumstances.