A comprehensive program for dealing with some of the key factors causing school dropout is described and evaluated. The Magic of the Mind program has four basic components, each addressing one of the following: (1) building self-efficacy in students; (2) teaching students learning skills; (3) teaching stress management to the students; and (4) building self-efficacy and stress management skills in teachers. Initial tests of the program at East Los Angeles Community College (California) with students (predominantly Mexican American) on scholastic probation have provided strong evidence of the program's effectiveness. Over a 1 and 1.5 year period, the MOM group increased an average of 3.8 grade points (grade points are equal to grade point average times units completed) and had a dropout rate of only 16% compared with the control group taught learning skills only. The control group's grade points decreased by an average of 5.45 and the dropout rate was 56%. Similar controlled studies are planned to test the program's effectiveness at the elementary through high school levels, but the program's effectiveness at these levels is already supported by considerable anecdotal evidence. The major reason for program success is thought to be its dramatic belief-building capabilities. By providing immediate feedback in all the techniques used, the program develops a strong belief in the ability to achieve for both students and teachers. (Contains 27 references.) (Author/SLD)