1. The Global Community for Academic Advising
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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.

2. 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)

3. 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)

4. 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

5. 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 12 credits per semester) = $7,200.00
Multiply by attrition rate for first-time freshmen of 20%**
(national average rate is 33%):
$7, 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

6. 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.

7. 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

8. 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

9. 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