This report discusses the proposed Grad*Star Program (a Women's Educational Equity Act Program) to deal with the extremely serious dropout program in Northern Kentucky. Housed at the University of Kentucky, it examines such factors as poor economic conditions, large numbers of women and households headed by women that exist below the poverty level, Appalachian fatalism, ineffective role models, and high absenteeism. It works with about 50 potential dropouts (two-thirds female) at Covington Holmes and Newport High Schools, addressing these issues. They will be offered the following: motivational and personal counseling to set career goals; economic opportunities for jobs in which their pay is based particularly on academic achievement; academic tutoring from peers; child care if needed; positive role models from volunteer mentors; referral to social agencies if necessary; and encouragement to make postsecondary plans through help from various agencies. (Author/SM)