In September 1995, the U.S. Secretary of Education invited seven individuals to take part in a special project to study the problem of Hispanic student dropout. The Secretary's charge to the Hispanic Dropout Project incorporated the goals of increasing public awareness about Hispanic dropout issues; developing policy-relevant recommendations at local, state, and federal levels; and supporting development of a stakeholder network to continue the project's work. To achieve these goals, the project commissioned 9 papers on Hispanic dropout issues, held open hearings in 10 cities, visited school and nonschool sites that were developing promising practices in Latino education and dropout prevention, held press conferences, and reviewed relevant educational research. This final project report reflects the knowledge and views of various individuals and constituency groups that hosted site visits, presented testimony, and participated in open discussions. Their evidence confirms that popular stereotypes blaming school dropout on Hispanic students, parents, or language are untrue. Such misinformation excuses inaction by turning Hispanic students into victims. Many findings and recommendations in the report are not new; they reflect what researchers have been saying for years about school effectiveness, reform, finance, and equity--messages that the nation, with few exceptions, has failed to heed. Sections detail findings and recommendations related to students; parents and families; teachers; schools; school district, state, and federal policymakers; community-based organizations, business, and the larger community; and researchers. Appendices overview the project; and list persons and organizations providing testimony, sites visited, and programs reviewed in commissioned papers. (Contains 140 references.) (SV)