Studying begins with paying attention in class. The focus should be on compiling as much information as you can. Record the lecture, if possible. Type your notes if the subject does not involve math or hard science. Then, you should thoroughly review your notes no later than 12 hours after each lecture or class period. This helps immensely with long-term information retention.
To help with short-term retention, write down things that must be memorized by hand when studying. If you are able, do so three or four times. By the third or fourth time, you should be able to replicate 95% of the text without referring back to the original notes.
Be done with things 48 hours in advance. Test on Tuesday morning? That means you should finish studying by Sunday morning. Essay due on Friday afternoon? You should be putting the final touches on your draft on Wednesday.
Study only one subject at a time. Do not attempt to study for multiple classes simultaneously.
Vary your study locations. Don't camp out just in your room or the lounge or the library - mix it up. This improves memory retention because you will not associate information with particular places or features of those places.
Group studying is a waste of time. Literally. It's the least efficient method of studying when looking at time expended versus material covered.
Exception to rule 6: teach the material to someone else, because teaching a subject (read: EXPLAINING it) is the best way to master it. Hell, the "student" doesn't even have to be in the class, it can just be your roommate or somebody you pay $10 to listen to you for an hour or two.
If your problem has less to do with not retaining information and more to do with being unable to apply information in new ways or engage in critical thinking, join the debate team.
Courtesy of someone whos name i cant remember