I agree!!
I was wondering why so many students who got financial aid just stopped coming after one or two classes. I couldn't understand why they didn't just withdraw. Finally had a student explain to me that getting an F or an N (N was the grade to give students who didn't show up to enough classes to get any grade) meant you didn't have to pay back your financial aid. If you withdrew from a class, the student had to pay back the tuition before they got any more financial aid.
So many of these kids were just scamming the system and had no intention of actually getting an education. I can't understand why any student who gets less than a passing grade doesn't have to pay back their tuition, book fees and so on. That would eliminate the kids who weren't there for an education.
At Arizona State if you drop before 60% of the semester is finished you have to repay the financial aid.