Personally i'd say that having them drop out makes the most sense. Sure, they 'could' be killed but really that's just kind of mean spirited I feel.<br/><br/>As for how new recruits come about, well... Perhaps the academy only selects so many students a year? With there being a 'reserve' list. IE: You were close to making the cut or did make the cut, its just that due to school size issues you were rejected. As students leave, or become unable to continue reserve students are called in to replace the lost.