Reasons Why Students are Considering Dropping Out

Introduction

The increase in dropout rates is one of the major issues being faced by universities and students, which has a direct impact on the various economies of the world. There are multiple factors, like increasing pressure and limited financial resources, have been identified for an upsurge in dropout rates. College degrees provide a lot of opportunity for exposure and advancement, but the constant mention of these accomplishments puts a lot of pressure on students despite these benefits.

There are reports showcasing that around 32.9% of undergraduates do not complete their degrees. This number also includes first-time undergraduates, whose number went up to 24.1% in 2020. It might be several issues, or it could just be a single one. Nevertheless, it's essential to examine the causes of these dropouts and revise the contributing variables.

Reasons for Students Dropping Out

Now we shall talk about the variables that are stated as the reasons for the students dropping out of college. Starting with

• Financial Constraints: Money is cited to be one of the main reasons for the increase in the dropout rate. A lot of the students in these universities come from families that take loans to manage their expenses. With the increased rents and interest rates, they have a lot of difficulty in pursuing their dream course.
• Increased Rent: With the rising inflation, the house prices have gone up which in turn has increased the rents of the property. It becomes tough for the students to manage their finances. The energy crisis has had a direct impact on the rise in the prices of heat. This year, the deepening energy crisis is also affecting third-level students, as the majority of them are concerned they won't be able to afford the escalating expenses of heat. The students worry that they might have to manage their studies while also taking care of their finances. This tends to create mental stress and takes a toll on their health, which makes them take the decision of dropping out.
• Housing Shortage: The increase in the number of students has created a difference in demand and supply. The housing supply is unable to keep up with the number of students coming in, which is increasing with every quarter. This is happening as the disposable income in middle-class households is continuously going up, and they are investing in the education of their children. This gap in demand and supply is creating a shortage in the housing available for students.
• Unforeseen Crisis: The universities are enrolling more students than the university halls or properties can accommodate which creates a difference. The students book their stay as they have got an admission, thinking they have a place to stay. Upon reaching they are told that the rooms are already booked and they might not have a place to put up while pursuing their favorite course. This is also cited as an increase in the rate of student dropout.

College Dropout Rates by Demographics

While dropping out of college may seem like a great idea for some as it has created great entrepreneurs like Bill Gates and Mark Zuckerberg, it may not work for a lot of everyone. College dropout rates show that there are 14.7% of enrolled students finish their degrees in six years or choose to drop out of the course, the latter one being the easiest option.

College Dropout Rates by Countries

It is found in various research that South Korea has the maximum number of college graduates (between the age of 25-34) and the USA is in the 11th position, followed by Iceland and Finland respectively, where it is found that 28% of their total population has received a college degree.

College Dropout Rate by Demographics

According to various reports, it is found that Asian students are the least likely to drop out of college while Black Students are more inclined towards dropping out.

Asians

As per the Think Impact report of 2021, it is seen that 72% of Asian students complete their college degree, whereas 64% complete it from the same college and 8% in a different college. The dropout rate amongst Asians is 10%, which is the lowest figure.

Hispanics

In Hispanics, this number to 55% of students finish their college degree, and 44% from the same college. There is a group of students with no college degree which makes up 27%.

White Students

The number of White students is among the 67% of people who enroll in college, and only 52% finish it.

Black

The number of dropouts or no enrolment is highest in Black where only 46% enroll and out of that only 35% can finish their degree. The chances of dropout are higher in males in comparison to females.

Dropout rates as per gender

• It is seen that women fare higher in comparison to men in college, there are 6 females enrolled for every 4 men, with 20% dropout being higher in males than females. The 2013 report by the U.S. Department of Education’s National Center for Education Statistics (NCES), that 66% of females have graduated college in comparison to only 60% of males.
• In EDI 2021, it was stated that 66.7% of high school graduates were enrolled in universities. It is also said in Think Impact report that in an average lifetime, a male college graduate earns $900,000 more than a high school pass-out.
• In females, this number rose to 71.3% being enrolled in universities, and they earn $630,000 more than high school passouts.

Effects of Dropout

Dropping out has a lot of consequences, not only for the students but also in the bigger scheme of things as well. But we cannot sideline the benefits of having a college degree. Employers are looking for skilled workers whether it is a four-year degree or an associate degree. The employers look out for people who have the knowledge but with the increase in the dropout rates or decrease in the enrolments, there is a scarcity of skilled workforce. Colleges do the work of providing technical knowledge to the students and preparing them for the jobs.

• Risk of Unemployment: Today even in a healthy economy, employers are having difficulty finding appropriate employees based on their qualifications. According to the Employment Policy Foundation, 2002, qualified employees earn $9,245 more than unqualified ones. According to the Think Impact report in 2021, the same students are anticipated to earn $ 21,000 less per year than college graduates, or 35% less overall. Additionally, compared to individuals with bachelor's degrees (or higher), those with high school diplomas had a 12.7% greater possibility of living in poverty (EDI, 2021).
• Limited Career Opportunities: The growth of the economy depends on education. The key to economic progress, according to Vision 2030, is education because it directly affects entrepreneurship, productivity growth, and eventually employment opportunities and women's empowerment. Education aids in developing young people's potential for the improvement of ability, creativity, and methodical skills to compete with the quickly transforming global inclination. Dropout rates among students lower the nation's literacy rate and create less innovative surroundings.
• Other Impacts: The rippling effect on the economy is much more than the personal gain or loss from the dropout. It results in a decrease in the overall literacy rate of the country which has further repercussions. These may include consequences like an increase in the crime rate or the effects on the health of the people. This also impacts the universities in the wrong way as well where their image gets tarnished because of the increase in the dropout rates.

Conclusion

The increase in dropout rate is not just because of one reason, it is a culmination of various things. The financial reason topping the charts is a simple solution making student loans a little inexpensive. It is also possible to enact laws or policies that would make a certain level of education obligatory. The governments could assist by reducing or eliminating tuition costs for a specific economic class in school.

Due to student dropouts, our economy also is shouldering the expense; annually, job losses and unrealized revenue from taxes from this group of dropouts are going to cost the nation more than $200 billion. Reports suggest that there is $1.5 trillion is piling up and there are more than 2 million people have failed to pay their debts People without education are less likely to find employment and are more likely to depend on assistance from the government or live in poverty.

Students dropping out from educational programs has an effect not only on the educational sector but it has a dire impact on the student housing sector as well. One of the prime reasons for student dropouts is the financial instability and cost of living crisis. Student housing providers can run programs which allow students to seek support for their issues, possibly receive financial aid and affordable rental options. 

Listing your property with amber and gaining insights into the diverse backgrounds of students can provide valuable market information. This can help housing providers tailor their offerings to better meet the needs of their student residents and encourage them to pursue their academic dreams.