REPORTS WERE RECEIVED FROM ALL COLORADO SCHOOL DISTRICTS ON THE NUMBER OF DROPOUTS FROM GRADES 7 THROUGH 12. THE CHARACTERISTICS OF THE DROPOUTS AND A RANDOM SAMPLING OF CHARACTERISTICS OF SENIORS WERE OBTAINED. PUPIL ACCOUNTABILITY WAS SEPARATED INTO TWO ASPECTS, SUMMER DROPOUT AND UNKNOWN WITHDRAWALS. CONFIRMATION WAS FOUND IN THE RESULTS THAT STUDY AND DESIGN OF ACTION PROGRAMS WERE NEEDED. SIGNIFICANT DIFFERENCES IN CHARACTERISTICS WERE FOUND AMONG DROPOUTS OF DIFFERENT SCHOOLS. CHARACTERISTICS ALSO DIFFERED BETWEEN BOYS AND GIRLS. IT WAS DIFFICULT TO PREDICT POTENTIAL DROPOUTS BY USING FREQUENCY TABLES. THIS PROJECT CONCLUDED PHASE TWO OF AN ONGOING COOPERATIVE RESEARCH PROJECT TO IMPROVE SCHOOL HOLDING POWER OF STUDENTS. THE DEVELOPMENT OF ACTION PROGRAMS WAS SUGGESTED. (RS)