[Loughla]

The incentive in that system is to ensure the wealthy student absolutely meets their academic requirements, regardless of ability.

How can you fail out Timmy Upperclass, if 10 students lose their funding next year with him gone?

[kenhwang]

If you fail out Timmy, he has to pay for tuition again thus paying for even more students. Or just charge the 10x upfront + normal tuition/year after that.

[selectodude]

Replace him with Billy Upperclass Transfer student.