A dual-factor mental health model includes measures of positive psychological well-being in addition to traditional indicators of psychopathology to comprehensively determine mental health status. The current study examined the utility of this model in understanding the psychological adjustment and educational functioning of college students. A sample of 561 college students were classified into four groups based on their levels of subjective well-being and clinical symptoms, and group differences in student engagement and academic achievement were examined. Results indicated that among students without clinical symptoms, those with high subjective well-being were more engaged in the college experience than their peers with low subjective well-being. Moreover, students with high well-being and low symptoms had the highest grade point averages (GPAs) of all groups. These findings suggest that both the presence of positive well-being and the absence of clinical symptoms are important in facilitating academic success.