Multilevel SEM was used to examine the extent to which student, instructor, and course characteristics affect student ratings. Data were gathered from 1867 students enrolled in 117 courses at a large teacher training college in Israel. Four alternative two-level models that differ in only the nature of the relationship among interest in the course subject, expected grade, and student ratings were tested. Two of the models were judged as less appropriate, one because it failed to support the spurious relationship assumed between expected grade and student ratings, and the other on grounds of poor model-data fit. The other two models were equally good both in terms of the model-data fit and the amount of variance in student ratings that is accounted for by each of them. Both models supported the mediation effect of expected grade in the relationship between interest in the course subject and student ratings.