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College dropouts cost states nearly $6.2B

A report released today illustrates the high cost to taxpayers for college students who drop out after their first year. The report by the American Institutes for Research shows that states spent nearly $6.2 billion over five years on full-time f...

A report released today illustrates the high cost to taxpayers for college students who drop out after their first year.

The report by the American Institutes for Research shows that states spent nearly $6.2 billion over five years on full-time freshmen who didn't return to the same college their sophomore year.

But the report does not account for students who transferred to another college after the first year and successfully completed college.

That overestimates the figures, particularly in North Dakota, where colleges and universities have developed seamless transfer for students, said Michel Hillman, vice chancellor with the North Dakota University System.

Report author Mark Schneider said he wanted to highlight the importance of the first year of college as higher education officials and policymakers increasingly emphasize college completion rates.

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"If you don't finish the first lap, you can't cross the finish line," said Schneider, vice president with the American Institutes for Research.

In addition to the state appropriations spent on students who didn't return their sophomore year, states gave more than $1.4 billion and the federal government gave $1.5 billion in grants over five years, the report said. The report used data from the Integrated Postsecondary Education Data System from years 2003 to 2008.

Schneider, who presented some of the report's information at a recent meeting of the North Dakota Higher Education Roundtable, acknowledged that the data does not track transfer students.

The statistics available also don't include part-time students. But there's no other standardized way to measure retention and completion rates, Schneider said.

"Unfortunately, given our data systems, this is as good as it gets," Schneider said.

Hillman said there is room for improvement on student retention, but he wouldn't use the statistics used in the report to guide decision-making.

Readers can reach Forum reporter Amy Dalrymple at (701) 241-5590

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