Being placed on academic probation can serve as a wake-up call for the student who has been devoting little time to his studies. The reality can set in that if he doesn't apply himself to his schoolwork, he may soon be dismissed from school or flunk out.
Academic probation can be a sign that the student is experiencing underlying personal issues that need to be addressed, especially if she historically performed well in the classroom. For example, the student may be suffering from depression or abusing substances like drugs or alcohol. Declining performance can be a sign that the student needs assistance such as counseling.
Placing a student on academic probation can help him take stock of his personal situation. For example, he may be working too many hours at a part-time job, spending too much time in sports or other activities or pursuing the wrong course of study. It may make him realize that higher education is not the right path for him to follow and allow him to pursue his "true calling" like becoming an entrepreneur or pursuing a trade.
On the downside, academic probation can create feelings of anxiety which can worsen the student's situation. The worry may make it difficult for her to sleep or concentrate on her studies. She may feel guilt or shame resulting from disappointing her parents or loved ones. There can be a stigma attached to academic probation and it becomes part of the student's record.
Students may not be permitted to participate in extracurricular activities. They may be removed from athletic teams or prohibited from participating in student organizations. This can cause the student to feel ostracized from campus life and take the enjoyment out of the college experience.