In many text classification applications, it is appealing to take every document as a string of characters rather than a bag of words. Previous research studies in this area mostly focused on different variants of generative Markov chain models. Although discriminative machine learning methods like Support Vector Machine (SVM) have been quite successful in text classification with word features, it is neither effective nor efficient to apply them straightforwardly taking all substrings in the corpus as features. In this paper, we propose to partition all substrings into statistical equivalence groups, and then pick those groups which are important (in the statistical sense) as features (named keysubstring-group features) for text classification. In particular, we propose a suffix tree based algorithm that can extract such features in linear time (with respect to the total number of characters in the corpus). Our experiments on English, Chinese and Greek datasets show that SVM with key...