The students' attrition rates among students enrolled at SQU ranged between 6.8% (1998), 7.8% (1999), and 7.9% (2000). However, the drop-out rate at the Sultan Qaboos University is increasing gradually, and this increase represents a problem for the university that provides free education and financial aid for all male students coming from areas within 100 km of the campus, and free accommodation and meals for female students. The purpose of this paper is to examine the factors influencing students' attrition rates at SQU. To fulfill this goal, a questionnaire survey was developed to identify students' perceptions of withdrawal from education and the reasons behind it. The analysis of results concluded that academic factors were the main factors influencing students to leave SQU before completing their degree, followed by social and then financial factors. Current study has revealed that financial factors did not have a significant influence on students' attrition rates at SQU. There is a need for more research, including conducting interviews with students, to better understand attrition rates at SQU.