We actually don’t see that one often except in pre-med students who choose a school where they are mid-pack (and not in the mid to upper 30s for ACT where “everyone” is mid-pack). Then I’m not so sure it was the school as their perception that “all” of the kids are smarter than I am, simply because the others had a better foundation going in. Since grades for pre-med count from the very beginning, there’s not much forgiveness.
One definitely has to be cautious picking a school where the student is not in the Top 25% (Top 10%?) of entering students to avoid that one, but that’s not the case here.
I have seen a fair number of drop outs from college, but they’ll usually admit they didn’t study enough having gotten caught up too much in various ECs - could be partying, could be other fun stuff - lots of options.