Considering the psychological factors that significantly associated either positive or negative with student’sacademic grades is vital to help the student’s success and persist in higher education. Therefore, this studywas carried out to address the psychological correlates of low academic grades among university students.This study also highlighted the mediating role of socio-economic status in relation to psychologicalcorrelates (stress, anxiety, and depression) that affect the low level of academic outcomes among universitystudents. For that purpose, a sample of (N=300) students belonging to diversified socio-economic statuswere selected by using an online G. Power sample calculator. The sample was chosen by using a convenientsampling method. In this study, the psychological correlates were level of stress, anxiety and depressionthat was measured by using DASS-42 item scale and the current CGPA was considered as student’s levelof academic grade. Similarly, self reported socio-economic status was considered as a mediating variablein relation to stress, depression, and anxiety among students. The collected data was analyzed by usingSPSS. The results of this study revealed that stress, anxiety, and depression were significantly correlatedwith the low level of academic grades among the students. The findings also showed that the level of socioeconomic status of university students plays a significant mediating role in relation to stress, anxiety, anddepression. Based on the results, the study suggested minimizing the level of stress, anxiety, and depressionto improve the academic grades of the students.