Student dropout represents a significant challenge in distance higher education. To better understand this issue, a comprehensive analysis of institutional data, spanning several years from a private German distance learning university of applied sciences, was conducted. The primary objectives were twofold: (1) to pinpoint institutional factors serving as predictors for student dropout and (2) to analyze the underlying psychological mechanisms. The findings indicate that part-time enrollment, age, interruptions, and overdue payments predicted dropout. Conversely, a good match between a student's occupation and the study program, as well as employer reimbursement of study fees, predicted degree completion. Further results suggest that students who recommend the program to others are more likely to succeed. However, those referred by friends are at a higher risk of dropping out. Additionally, poor grades and late submission of the first assignment were identified as predictors of dropout. A noteworthy finding was the interaction between these factors and the student's qualification for studying. Vocationally qualified students tend to submit their first assignment earlier but perform worse academically compared to academically qualified students. Generally, the influence of socio-demographic factors such as the educational background, gender, or nationality was low. This suggests that some of the disadvantages that non-traditional students might face at traditional universities in Germany might cease to exist at private distance universities of applied sciences. The implications of these findings are discussed.