The effects of failing to pass a high school exit exam were examined for the Georgia Basic Skills Test (GBST). Data were collected on a random sample of students who were tenth graders in 1983 and in 1984. The following issues were studied: (1) impact of failure on self esteem, as measured by the Piers-Harris Children's Self-Concept Scale (P-H); (2) optimal number of trials needed to pass the exit exam; and (3) characteristics which distinguished passers from non-passers. Data were also collected for seniors who passed the competency test and graduated in 1985 and 1986. The P-H was administered before the GBST, immediately after, and two months after receiving scores. Results showed that over 70 percent of the students passed both sections of the exit exam on the first test administration, even though six or more opportunities were provided. For one of the years studied, students' self-concept was influenced by knowledge of passing status after the first test administration. Initial self-concept was also significant. Self-concept, grade point average, and normal curve equivalent scores on the GBST predicted passing status, using discriminant analysis. Since a smaller number of students failed the GBST during the second year, further research on this situation was suggested. (GDC)