Kris Lewis @ Dixie High School poses an excellent question:
I have about 10 students that I know aren't returning next year. There are no requests for them and on Scheduling Set up, I have them not being sceduled, but what school do I direct them to? Right now, I have them set at the blank spot.
Please do just as she suggests remove any class requests they might have then go to Scheduling Setup and uncheck the schedule this student box. Leave them in school if they haven't transfered out until school is out then transfer them out on May 23 using the appropriate code. If they are switching to another school in the district then select their next school and let the end of year process move them.