In this context I believe the distinction is between a technical college (1-3 year programs for certifications and diplomas) and a degree-orientated/undergraduate university, where the courses typically grant a bachelors degree instead of certification or a diploma.
I have to note the UK's statistics on this front are very confusing, as there is no physical distinction between a technical college and a university as there is in North America and is based off of course-outcome aims rather than actual institutions attended.
Canada's statistics are rather interesting on university drop outs, in that the Atlantic Provinces have phenomenally low first-year drop out rates (I believe P.E.I. is ~16% versus ~36% in Ontario, note that these don't include first-year failure percentages). So it truly isn't the institution itself that causes the failure, but an artefact of the process present in most schools.
Also I apologize for my ignorance here but what's the distinction in this context between a university and a college? Is it still research vs. not-so-much?