This study investigated the degree to which strengths ownership, psychological capital (PsyCap) qualities of hope, self-efficacy, optimism, and resiliency, and demographic characteristics of gender, college class level, leadership experience, and strengths experience are predictive of effective leadership practices as defined by the Leadership Challenge model. Participants included 153 students in leadership positions in student development programs at five faith-based colleges and universities. All participants had completed the Clifton StrengthsFinder earlier in their college experience. Participants completed the Student Leadership Practices Inventory (SLPI), the PsyCap Questionnaire, and the Strengths Ownership scale. The criterion variable consisted of student leader scores on the SLPI and each of its five scales. Hierarchical multiple regression was utilized to analyze the contribution of psychological capital variables and strengths ownership to student leader ratings of effective leadership. Findings indicate that Hope scale scores most strongly predict effective leadership ratings on the total SLPI score and all but one of the SLPI scales. Self-efficacy and Optimism scores are each significant predictors on two of the SLPI scales. These psychological capital qualities emphasize goal-directed thinking similar to the goal-oriented practices emphasized in the Leadership Challenge model. The results of this study demonstrate the importance of impacting the growth of hope and goal-directed thinking in college students through leadership development programs. (Contains 2 tables.)