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From The Collaborative International Dictionary of English v.0.48:
Washout \Wash"out`\, n. 1. The washing out or away of earth, etc., especially of a portion of the bed of a road or railroad by a fall of rain or a freshet; also, a place, especially in the bed of a road or railroad, where the earth has been washed away. [1913 Webster] 2. a complete failure; -- of an enterprise. [PJC] 3. a person who has failed a course of study or training, leaving the program before its completion. [PJC]