This study was designed to investigate the bases of teacher expectations in higher education. The first author interviewed 20 university teachers from an English-as-a-foreign-language course, exploring their expectations for the first-year undergraduates in their classes. The grounded theory method was adopted to analyse the data that had been collected. The results showed that for this sample of 20 teachers, student characteristics were important contributing factors to their expectations in the teachers' university settings. The factors the teachers considered important included students' (a) prior academic achievement, (b) motivation, (c) study skills, and (d) academic discipline. Also, teacher characteristics were found to be another major source of these university teachers' expectations, including teachers' (a) past teaching and learning experience and (b) teaching self-efficacy. The findings suggested that the bases of teacher expectations in higher education may differ from those at the elementary or secondary school level.