This paper attempts to analyze the explanatory variables that best explain retention among liberal arts colleges. Using the model’s estimated parameters, the effects of Standardized Test Scores, average loans, educational related expenditures, average grants, and acceptance rate were calculated. This study concludes that increases in average grants, educational related expenditures, along with increases in Standardized Test Scores will lead to higher levels of retention among Baccalaureate Private Colleges. Taken together, these calculations indicate the degree of importance each explanatory variable has on the retention across Private Liberal Arts Colleges. This study compares the results of a cross sectional data set and a panel data set in order to properly examine the validity of the both outcomes. This analysis is intended to help Baccalaureate Private Colleges understand the factors that lead a student to drop out, as well as the factors that can enhance the college’s ability to successfully retain students
