In today's education industry, more and more Higher Educational Institutions (HEIs) are emerging, where students have a lot of options in opting for the best intuition, which they perceive would fulfil their educational needs and requirements. Both public and private HEIs are constantly evolving their services for the students. This study examine the 'Explanatory Model' which explored the Student Satisfaction Index (SSI) and try to evaluate the student satisfaction level. The software Statistical packages for social sciences is used to test the proposed hypotheses. These HEIs should explore and formulate new and innovative strategies to attract, retain and establish good relationships with students in order to establish or keep their competitive edge in the education industry. This study concluded that 'Perceived Quality' along with other factors, influenced students' satisfaction and loyalty.