RPTR AND DEVELOPMENTAL LCL CTLR MISSED READBACK OF ACFT #1 TO HOLD SHORT OF THE RWY. PLT REPEATED HOLD SHORT IN POS AND WENT INTO POS ON THE RWY. ACFT #2 ON FINAL FOR THE SAME RWY WAS ISSUED GAR BUT CONTINUED APCH WHILE ACFT #1 EXITED THE RWY PER INSTRUCTIONS.

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ACFT #1 WAS A STUDENT SOLO WISHING TO DEPART TO THE PRACTICE AREA. DEVELOPMENTAL LCL CTLR CLRED ACFT #1 FOR TKOF AND ISSUED TFC ON A 3 MI FINAL (ACFT #2). PLT OF ACFT #1 DID NOT RESPOND IN A TIMELY MANNER TO THE CTL INSTRUCTION; SO DEVELOPMENTAL LCL CTLR TOLD PLT OF ACFT #1 TO HOLD SHORT OF RWY 17L. BOTH DEVELOPMENTAL AND FPL LCL CTLRS HEARD THE PLT READ BACK 'HOLD SHORT.' SECONDS LATER THE FPL LCL CTLR SAW ACFT #1 HOLDING IN POS ON RWY 17L. DEVELOPMENTAL TOLD ACFT #1 TO EXIT THE RWY; AND ACFT #2 TO GAR. ACFT #1 TURNED AROUND AND EXITED THE RWY; BUT ACFT #2 CONTINUED HIS APCH OVER THE THRESHOLD; INTENDING TO LAND NOW THAT RWY WAS CLR. SUBSEQUENT REVIEW OF TAPE RECORDINGS SHOWED THAT PLT OF ACFT #1 READ BACK 'HOLD SHORT ON RWY 17L.' CONTRIBUTING FACTORS: 1) CTLRS WERE CUED IN ON 'HOLD SHORT' AND MISSED THE REST OF THE READBACK. 2) STUDENT PLT OF ACFT #1 WAS NOT PROPERLY PREPARED FOR SOLO FLT; AS HE HAD NO IDEA WHAT 'HOLD SHORT' MEANT. 3) AIRCREW OF ACFT #2 WAS HELL BENT ON LNDG (PRESSURE TO SAVE MONEY?) AND MADE A BAD SIT WORSE BY NOT COMPLYING WITH ATC INSTRUCTION TO GAR.