If a student quits college and doesn't go back, there is a strong possibility that he will earn less money. College graduates earn about $20,000 more annual income, on average, than those with just a high school diploma, according to the Education Pays 2010 study put out by the College Board Advocacy and Policy Center.
The negative effects of dropping out go beyond money. The College Board also revealed that college graduates are more likely to have health insurance. Roughly 68 percent of people with college degrees had employer-sponsored health care coverage. By comparison, just 50 percent of high school graduates had health insurance coverage from their employer.
Students who decide to leave college have to be mindful of the fact that their college debt doesn't go away. Whether the student leaves school after one year, or three years, chances are, he took out student loans to pay tuition. A study by the National Center for Public Policy and Higher Education found that students who didn't get their degree were 10 times more likely to default on their loan than students who earned their degree.
There may be psychological impacts from dropping out of college. Often, students feel stigmatized as a quitter or a failure by family and friends when they quit college. Further, it can negatively impact one's self-esteem going forward. If the individual decides to walk away from one of the first big challenges in her life, that mentality could stick with them through future endeavors. While college may be difficult, sticking with it, or transferring to another school that is more suitable, will likely be a much better decision in the long run.