The purpose of this study was to determine if extracurricular activity participants in the Anchorage (Alaska) School District were dropping out of school at a greater rate as a result of having to meet a "C" average grade requirement for participation. Subjects of the study were all students in grades 9 through 12 who participated in extracurricular activities while enrolled in the Anchorage School District during the 1985-86 and 1986-87 school years. Using enrollment data converted to percentages, the study showed that the dropout rate of extracurricular participants had not increased. Only one percent of all extracurricular activity participants dropped out of school because of an inability to maintain a "C" average. It was concluded that the "C" average grade requirement had not caused an increase in the dropout rate of extracurricular activity participants. (Author/TE)