A study of the Philadelphia Lutheran Settlement House's Women's Program was conducted to determine what methods and practices the program uses to maintain a high retention rate (75 percent) of students in its adult basic education (ABE) classes and what else can be done to retain students more effectively. Data were gathered from two basic literacy classes and two adult basic education classes (which began with a total of 78 students) through interviews with students who dropped out, in-depth interviews with a sample of students, follow-up interviews with students who remained in the classes, and discussion with the teachers of the classes. Analysis of the data comparing students who dropped out of the program and those who were retained identified three main factors that lead to student retention: support from others to continue attending classes, sense of self-esteem and personal empowerment, and quality of teacher interaction. Recommendations were made to improve retention rates by increased follow-up with students who miss classes, a more extensive orientation and registration program, ongoing student support systems, staff development, and improved student support services. (Appendixes to the report include the following: education program statistics for 1991-92, initial and second student interview forms, interview sheet for students who dropped out, teacher interview questions, and a sample of collaborative student writing to welcome new students.) (KC)