The Global Community for Academic Advising NACADA Executive Office Kansas State University 2323 Anderson Ave, Suite 225 Manhattan, KS  66502-2912 Phone: (785) 532-5717    Fax: (785) 532-7732 e-mail: nacada@ksu.edu © 2010 National Academic Advising Association The contents of all material in this presentation are copyrighted by the National Academic Advising Association, unless otherwise indicated. Copyright is not claimed as to any part of an original work prepared by a U.S. or state government officer or employee as part of that person's official duties. All rights are reserved by NACADA, and content may not be reproduced, downloaded, disseminated, published, or transferred in any form or by any means, except with the prior written permission of NACADA, or as indicated below. Members of NACADA may download pages or other content for their own use, consistent with the mission and purpose of NACADA. However, no part of such content may be otherwise or subsequently be reproduced, downloaded, disseminated, published, or transferred, in any form or by any means, except with the prior written permission of, and with express attribution to NACADA. Copyright infringement is a violation of federal law and is subject to criminal and civil penalties. NACADA and National Academic Advising Association are service marks of the National Academic Advising Association. The Cost of Attrition: an Economic Formula Dr. Rich Robbins, Bucknell University Course instructor acknowledges contributions to this presentation from Wes Habley of American College Testing (ACT), Inc.

First-time Entrants to 4-year Institutions 37% will never earn a 4-year degree 44% will eventually complete a 4-year degree at that institution 19% will eventually complete a 4-year degree at another institution (Tinto, 1986, 1993)

First-time Entrants to all forms of Higher Education 40% will never earn a degree 45% will eventually earn 4-year degrees 15% will eventually earn 2-year degrees (Tinto, 1986, 1993)

The decision to drop out is a complex process involving a series of events which occur over time All aspects of campus life can have an impact on student persistence behavior Carefully designed interventions can exert a positive influence on persistence behavior

Cost of Attrition For a single student taking 12 credit hours per semester in the first semester of freshman year: 12 hours x $100.00* = $1,200.00 Loss of this single student over next 3 years (6 semesters @ 12 credits per semester) = $7,200.00 Multiply by attrition rate for first-time freshmen of 20%** (national average rate is 33%): $7,200.00 x 1,000*** = $7,200,000 loss per year over next 4 to 6 years for this specific cohort of students *enter your institution’s tuition-per-credit hour rate here **enter your institution’s freshman-to-sophomore attrition rate here ***enter your institution’s total loss of students based on attrition rate and population

Other Considerations (monetary considerations for the institution) Loss of revenue for local businesses most local Chambers of Commerce can provide data on the impact of student spending in the community Loss of other revenue generated by students on campus or in community e.g., parking permits, parking tickets, campus or community volunteer services, etc. Loss of other revenue generated by students’ families and friends on campus or in community e.g., visits, athletic events, homecoming, Parents’ Days, etc.

Other Considerations (more conceptual, long-term, future effects) loss of future contributions from possible alumni who never become alumni cost of bad public relations, such as word-of-mouth of dissatisfied students, dissatisfied parents, dissatisfied merchants, etc. lowered internal morale due to decreased enrollment (fewer students in classes; fewer students in major departments, etc.) for the unsuccessful student, lifetime personal, psychological, and financial costs of not obtaining a degree

Other Considerations (cost of recruitment of a replacement student) cost of travel expenses for recruiters costs of hotels, meals, etc. for recruiters cost of mailings to prospective students (e.g., paper, envelopes, stamps) cost of work hours to recruit a replacement cost of time away from other tasks other costs specific to your institution

Multiply each of these costs for a single student by your institution’s attrition rate, and add to loss of tuition The total costs should be enough to get the attention of the administration If you can then demonstrate the likelihood that your program (or proposed program) does or will increase retention, you can put a monetary value on your efforts in this area