This makes no sense unless, as @LucieTheLakie suggested, these are full pay students who were forced to transfer out for financial reasons. Think about it, after all . . . if a student is miserable, wouldn’t they transfer out immediately, between freshman and sophomore years? Why would they wait another full year before transferring?
As a parent who’s “been there, done that” (with a student who was unhappy at college and wanted to transfer), I’m not buying it.