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This research project aimed to provide a clearer guide as to what are strong relationships between service recovery and student loyalty within national university setting in Taiwan. A research model of service recovery on student loyalty was proposed and tested by using a Structural Equation Modeling approach. A survey was conducted among 330 higher education students and received 260 usable questionnaires in response, for a valid return rate of 87%. The results indicated that the adequate measurement model was a good fit with the data. The hypothesis tested is: the perception of the service recovery of the high education institution is positively related to student loyalty. This implies that the better a student perception of the service recovery is the higher the student loyalty of higher education. The findings of this study would provide insights to higher education managers to develop administrative strategies. This study also adds to the existing body of research on student perceptions of service recovery and loyalty issues in higher education. Keywords: Service Recovery, Loyalty, Higher Education, Structural Equation Modeling.