INCLUDED IS AN ANALYSIS OF A WORK-STUDY DEMONSTRATION PROGRAM FOR POTENTIAL DROPOUTS FROM NEW YORK HIGH SCHOOLS. THE FINDINGS ARE BASED ON DATA AND INFORMATION GATHERED FROM MANY SOURCES, ALL OF WHICH ARE CONNECTED WITH THE PROGRAM. THE ATTEMPT IS TO PLACE POTENTIAL DROPOUTS IN PART-TIME EMPLOYMENT WITH EITHER PRIVATE EMPLOYERS OR WITH PUBLIC ORGANIZATIONS. THE PURPOSE IS TO TEACH THEM GOOD WORK HABITS AND HELP THEM ACHIEVE A SUCCESSFUL ADJUSTMENT TO THE DEMANDS OF ADULTHOOD. AN EFFORT IS MADE TO ENCOURAGE STUDENTS TO RETURN TO SCHOOL ON A FULL TIME BASIS. STUDENTS ARE REFERRED TO STEP BY GUIDANCE PERSONNEL OR TEACHERS. A TEACHER-COUNSELOR WORKS CLOSELY WITH EACH STUDENT IN AN ATTEMPT TO GAIN HIS CONFIDENCE AND PROVIDE AT LEAST ONE UNDERSTANDING FRIEND WITH WHOM HE CAN FREELY DISCUSS HIS PROBLEMS. THUS FAR, PROGRAM COST HAS AVERAGED $400 PER YEAR PER STUDENT. SEVERAL CRITICISMS OF THE PROGRAM ARE PRESENTED AND ANALYZED. THE MAJOR PROBLEM LIES WITH THE CHOICE OF STUDENTS TO BE PLACED IN THE PROGRAM. IF THESE AT THE BOTTOM OF THE SCALE ARE CHOSEN EXCLUSIVELY, IT IS DIFFICULT TO PRODUCE RESULTS ADEQUATE TO JUSTIFY THE EXPENDITURES OF THE PROGRAM. IF ONLY THE POTENTIALLY "SUCCESSFUL" STUDENTS ARE CHOSEN, ONE WONDERS IF PERHAPS THESE STUDENTS WOULD NOT HAVE PROGRESSED SUCCESSFULLY WITHOUT THE HELP OF THE PROGRAM.