In the present work an attempt has been made to design and evaluate academic performance of students in educational environment. Various issues and problems are associated with the academic performance evaluation in the field of education. In the new approach, the student academic performance evaluation problem can be considered as a clustering problem, where clusters (or classes) are formed on the basis of intelligence level of students, and the class size is limited to predefined capacity. The intelligence level wise grouping is essential for maintaining the homogeneity of the group otherwise it would be difficult to provide good educational services to highly diverse student population. Commonly used practice of score aggregation based student similarity or his/her rank determination is unrealistic because scores are assembled from different score combinations. It has been observed that there are some factors, other than academic ones which create/pose barrier to students attaining and maintaining their high performance.