However, you are ignoring the financial implications.
CCs need tuition payments to survive. Very few, if any, have large endowments.
Student's who aren't on track to graduate can't always obtain financial aid or subsidized/deferred-payment loans. And even though CCs tend to be more affordable than 4-year schools, they still aren't inexpensive to the majority of the population. So, graduation rates become a major part of ensuring financial viability.
However, you are ignoring the financial implications.
CCs need tuition payments to survive. Very few, if any, have large endowments.
Student's who aren't on track to graduate can't always obtain financial aid or subsidized/deferred-payment loans. And even though CCs tend to be more affordable than 4-year schools, they still aren't inexpensive to the majority of the population. So, graduation rates become a major part of ensuring financial viability.