Online learning has been considered a successful source for reaching learners anywhere, and anytime despite all challenges for decades. This two-fold study was designed to explore how COVID-19 fear affected students' social presence in online learning, and how their internal psychological resources such as motivation moderated to make their online learning experience successful in public, and private universities. A cross-sectional, descriptive, and correlational research design was carried out by using a simple random sampling (N=244 students from Public sector universities, and N=178 students from Private universities). Online structured questionnaires were developed to collect data by using Google forms. The study found fear of COVID-19 highly insignificant in relationship with Social Presence, while Cognitive Problem-Solving Skill was significant with Psychological Motivation in Public Sector universities. Psychological Motivation also exhibited a strong positive and significant correlation with Cognitive Problem-Solving Skills. The study concluded that in Public Sector Universities, the existence of fear of COVID-19 was accompanied by greater psychological motivation among students, resulting in an increase in their cognitive problem-solving ability. While in Private Sector universities fear of COVID-19 was seen having a significant relationship with Social Presence, Cognitive Problem-Solving capability, and Psychological Motivation. In Private Sector universities, fear of COVID-19 was also accompanied by greater psychological motivation among students, resulting in an increase in their social presence.