Dropping out of college after only one year does more than anger parents. Some people are saying it’s a waste of taxpayer money, too.

• A new study shows that between 2003 and 2008, states distributed about $6.2 billion to help a very special group of students pay for school. This group is made up of students who dropped out after one year.
• Critics and regulators are generally of two opinions about this apparent waste of public education funding: one group says it shows that colleges are not doing enough to retain its students. Others say this problem makes it clear that too many students are being encouraged to attend four-year colleges.
• There are two approaches as well: Ohio has started basing its funding decisions on how many students graduate from a university – not how many enroll. But the Obama administration and certain private funders have been focusing more on helping students get through life without a college degree.

Facts & Figures

• In addition to the $6.2 billion states spent on higher education for dropouts from 2003-2008, federal and state governments spent almost $3 billion on grants for these students.
• These figures represent 2-8% of states’ total higher education spending.

Best Quote

“We recognize an institution is not going to be perfect on graduation and completion rates. But at the same time, we know they can do better than they’re doing. And if you place the financial rewards around completion, then you will motivate that.” – Eric Fingerhut, Chancellor of the Ohio Board of Regents

Tags: college, dropouts, higher education, public funding