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College dropouts cost themselves, and Nevada, millions of dollars

A new report that crunches the numbers on the missed earning potential of college dropouts says failing to graduate results in millions of dollars in lost income and tax revenue that could have helped spur economic development in Nevada and across the country.

Nevada's college dropout (1) On magnetic media, a bit that has lost its strength due to a surface defect or recording malfunction. If the bit is in an audio or video file, it might be detected by the error correction circuitry and either corrected or not, but if not, it is often not noticed by the human  rate is among the highest in the U.S., the report says.

College dropouts in the Silver State miss out on an estimated $11.7 million in income each year, according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

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 the report released Monday by the American Institutes for Research, a Washington-based nonprofit, nonpartisan research group.

Over the average 40-year work life, lost income by Nevada's college dropouts adds up to an estimated $618 million, which translates to about $133 million in lost federal tax revenue.

Since Nevada does not collect state income tax, the state is not directly affected by its college dropout rate. However, Nevada is losing out on higher property and sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government.  revenue that were not calculated in the report, according to Institutes Vice President Mark Schneider.

"This research shows what we lose when students don't reap the economic benefits of higher education and higher salaries," said Schneider, who wrote the report with researcher Lu Michelle Yin.

Nationwide, the report estimates that of the 1.1 million students entering 1,700 four-year colleges in fall 2002, nearly half of them failed to graduate within six years. As a result, about $3.8 billion was lost in income as well as about $730 million in federal and state income taxes nationwide.

Nevada's lost income and tax revenue were among the lowest in the 50 states; however, the state has some of the lowest college graduation rates in the country, Schneider said. UNLV UNLV University of Nevada, Las Vegas  has a six-year graduation rate of 40 percent; UNR UNR University of Nevada, Reno
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 is only marginally better at about 50 percent, he said.

"You've got a graduation problem," Schneider said of Nevada. "It's not esoteric es·o·ter·ic  
adj.
1.
a. Intended for or understood by only a particular group: an esoteric cult. See Synonyms at mysterious.

b.
. You're losing out on economic development."

From 2002 to 2009, 1,436 students dropped out of UNLV, according to the report. Over one year, these UNLV students lost $6.1 million in wages, and would have paid about $920,000 in federal income taxes. The report found that over the average 40-year work life, the same students missed out on $325 million in income, and would have contributed $70 million in federal income taxes.

The American Institutes for Research's report doesn't take into account how much states spend to educate college students who eventually drop out. The group's October report found that Nevada spent about $68 million from 2003 to 2008 on students who dropped out after one year of college.paul.takahashi@lasvegassun.com / 259-8803
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Author:Staff
Publication:Las Vegas Sun
Date:Aug 24, 2011
Words:429
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