Student retention is an important concern for higher education institutions. The present study tested self-efficacy variable to examine the impact of personal ability of freshmen in their decision to stay in the institution of higher education. The data was collected from both public and private sector universities in Karachi. A survey method was used to collect the data from 645 students from public and private sector universities. The data was analyses on IBM SPSS Statistics 20. The result showed that self-efficacy have a strong influence on intention of freshmen to stay in the same university. The impact of self-efficacy was the same for both public and private sector universities. It was recommended to include self-efficacy as a factor in retention studies
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