The federal requirements of No Child Left Behind (NCLB) have placed a new focus on increasing graduation rates and reducing dropout rates. While the dropout problem has generated research and new programs over the last 30 years, the dropout rate has remained relatively unchanged. Students drop out of school for many reasons, and the characteristics of dropouts are often the same as students who do not drop out. This document examines the multi-faceted issues related to dropping out and suggests actions to improve schools and help students complete their education. Specifically, it summarizes the research and professional literature in order to answer the following questions: (1) Who is a dropout?; (2) How many students drop out of school in the U.S. and in Washington State?; (3) Who drops out of schools and why?; and (4) What can be done to reduce the number of dropouts? The document is organized into seven chapters. The Introduction discusses how dropout rates are defined and the consequences of dropping out of school early. The second chapter examines the dropout rates in the U.S. and Washington State. Chapters 3 and 4 look at student, family, community, and education-related factors that contribute to the dropout problem. Chapters 5 and 6 discuss a variety of ways to keep students in school as well as dropout recovery programs. The concluding chapter examines the implications for school and district policies and procedures and for school reform in general. The publication includes a bibliography and two appendices: (1) Estimated On-Time Graduation Rates; and (2) Kentucky Dropout Prevention Standards and Indicators. (Contains 7 footnotes, 7 figures and 2 tables.) [This update is a revision of a 2003 document of the same name.]