Ok maybe my estimate is off. For it to get to that level the applicant would have had to make it all the way through the program, but nevermind. But how long is it before that dropout gets to try again? Let's compare. Use typical rates for salary of an FO in the estimate, say $20k year one and $32k year two. I wonder if the washout would ever return.

More than a 5% washout rate sounds pretty fishy to me. And I think they know what they are doing as it approaches to 15-20%. They seem to have decided the loss of revenue from not filling seats is worse than the money thrown out in mistraining a number of (unfortunately) not quite ready applicants. I assure you money is what talks, and you have to assume they know what they are doing if the washout rate is so high.