There is a substantial body of research concerned with student retention in higher education. However, in regard to factors related to study environment, existing research is described as incomplete. Based on Tinto's institutional departure model and a literature review of recent international articles on dropout in higher education, this article suggests a revised model for understanding dropout processes. The model envisages study environment as a concept consisting of overlapping domains of a social system, an academic system, and teaching. The article distinguishes between factors related to each of these three systems and discusses how they can be used to understand and prevent dropouts.