collegeStudents who drop out of school before reaching their sophomore year cost taxpayers billions of dollars, according to new research.

Taxpayers spent more than $9 billion over five years subsidizing students who didn't make it to the second year of four-year degree courses, according to new research from The American Institute for Research (AIR).

"Every spring, hundreds of thousands of students decide not to return to college," Mark. Schneider, AIR's vice president, said. "The financial costs to states are enormous."

Most students attend public colleges or universities that are subsidized directly and through grants to students. Nationwide, these subsidies average nearly $10,000 a student each year.

California lost $467 million in college-drop out subsidies, with states including Texas and New York also topping $400 million. The average state spent $120.5 million in state subsidies to first year dropouts between 2003 and 2008.

Increase your money and finance knowledge from home

Banking Services 101

Understand your bank's services, and how to get the most from them

View Course »

Goal Setting

Want to succeed? Then you need goals!

View Course »

Add a Comment

*0 / 3000 Character Maximum


Filter by:

College is the number 1 biggest rip off in America today. I understand that there has to be a higher learning for some things. But most people that go don't use the degree that they study for and most jobs have been created that you have to have a degree to get it, it can be a degree in sheep hearding but as long as you have the skin the jobs yours. I have seen people with degrees that are the stupidest people I have ever met. Nice but stupid. Then it takes years for these kids to pay back there student loans. I quit High School in 10 th grade and worked in the steel mills then worked up in various jobs. Through hard work I retired at 55 making a gross income of over 100,000 a year. I know I am an exception but I am just saying.

October 12 2010 at 5:27 AM Report abuse +1 rate up rate down Reply

this was another good fiscal idea from both parties in Congress. they are earning six figures with full benefits while they wreck the economy and legislate everything for us while exempting themselves...WHY???? we need to vote out all career politicians, every election, every time, starting in November. They are not statesmen and they don't care about us. and the ballot box is our only power. only let them stay one term.

October 11 2010 at 8:31 AM Report abuse -1 rate up rate down Reply

So it took em a year to learn that they were involved in a State sponsored Ponzi scheme? That's much better than the folks who take 6 years to complete four and never learn all they have in their hands is a high priced hunting license ...

October 11 2010 at 7:30 AM Report abuse +2 rate up rate down Reply
1 reply to G's comment

I take it you've never been?

October 11 2010 at 11:54 PM Report abuse -1 rate up rate down Reply