Why is the Cost of Attrition Important?
An attrition cost is a conceptual dollar figure representing the estimated expenditures that will not result in “success,” which is defined as obtaining a degree from the state’s higher education system. Calculated in a relatively straightforward fashion, attrition costs have implications for the efficiency of the system in producing degrees. A lower attrition cost indicates greater efficiency, implying that investment in the system yields a higher rate of success. It goes without saying, however, that any single indicator cannot fully explain the efficiency of a higher education system. Nevertheless, the cost of attrition sheds light on one aspect of system effectiveness—providing policymakers with a framework to better understand the financial efficiency of the system.