The main purpose of this study was to investigate the on-campus and off-campus factors responsible for female students' low academic performance and consequently high attrition. Based on review of the related literature, basic research questions were formulated. For data gathering, both quantitative and qualitative research methods were employed. The quantitative data were obtained through questionnaire. A pilot study was conducted to validate the instrument using 30 second year university students and was followed by the main study. The fi nal version of the questionnaire was administered for 600 undergraduate students at Bahir Dar University. The qualitative instrument constituted of document analysis, student records, and interview. The SPSS 13.0 was used for data analysis. Statistical techniques such as Percentage, Cross Tabulation, Pearson Product Moment Correlation, t-test and Regression Analysis have been used for data analysis. Though the rate of attrition decreases, the number of female students' attrition has increased. The problems female students encountered constitute personal, university related factors, academic factors and economic factors. Previous academic background (high school) is one of the major factors for their low academic performance. The off-campus factors that affect female students' academic performance include family background, Disco and traditional Music Houses and economic problems. In conclusion, the majority of problems female students encounter and those factors that affect female students' academic performance are personal and the other problems are caused by the university environment.