I'm not a college/university drop-out and neither are my parents, cousins, etc... . One cousin though may be a drop-out soon and my friend is failing miserably so he may.

If I were the parent, I'd see what the kid's strengths and dreams are. If they want to be a mechanic or something, then enrolling them in a four-year university program may not be their aspiration and it could just be a waste of your money.

Or, if they want a career that requires college/university, perhaps they're not in the right program for it or they find the program or university/college too hard. You could try getting them into an easier one.

But, since this is after less than a year, the first year or so tends to be the hardest. I'd encourage them to press forward, give them a deal, such as they pass the next year and they get some nice reward.