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Also, I'm sure it is correlated with paying so much for a degree. When a single year can cost tens of thousands failing a subject might incentivize the student to drop out, resulting in loss of a high-paying and otherwise reliable customer.

When there is no obvious reason, the purpose is always monetary in nature.

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In Ontario (and probably other provinces in Canada), there is a strong financial incentive by the province to universities (in the form of tuition matching) to maintain a high retention rate.

Now that's perverse... It seems like our short-sighted vision is screwing us in realms of both finance and education.

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