The purpose of this quantitative correlational-predictive study was to determine to what extent, if any, instructional costs and student services costs together and separately predict retention rates in the state of Texas in private postsecondary institutions. Based on Tinto's theory of institutional departure, the predictor variables were instructional costs and student services costs, and the criterion variable was retention rates of postsecondary private institutions in Texas. The research question is: To what extent, if any, do instructional costs and student services costs together and separately predict retention rates in the state of Texas in private postsecondary institutions? The data on retention rates and the costs for instructional services and student services came from archived, secondary data on the Integrated Postsecondary Data Systems website. Through this quantitative correlational-predictive study, useful research data were utilized to identify how 99 postsecondary private institutions in Texas could increase retention rates, considering costs for instruction and student services. The results of the multiple linear regression indicated that there was a collective significant effect of instructional costs on retention rates F(1,58) = 4.754, p < 0.05, Adjusted R2 = 0.060). If the instruction cost increases by 1 unit, the average retention rate increases by 6.61 units. This indicates that there is a positive relationship between instructional costs and retention rates. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://bibliotheek.ehb.be:2222/en-US/products/dissertations/individuals.shtml.]