Universities either public or private and its colleges enroll thousands of students into various courses or programs every year. They collect information from students at the time of admissions and store the same in computers. Understanding the benefits of data is essential from business point of view. Data can be used for classifying and predicting the students’ behavior, performance and dropouts as well as teachers’ performance. Therefore, this paper examines the role of data mining in an education sector. In addition, lays emphasis on application of data mining that contribute to offer competitive courses and improve their business.