Focusing on how local village communities in developing countries might support part or all of their educational costs, this study describes methods used by developing countries to reduce education costs and offers a model incorporating several of the most successful components of such projects. First is a discussion of methods used by governments to reduce education costs, including salary freezes, lotteries, and patriotic service alternatives. A description of methods designed to provide local support of education examines community projects which incorporate traditionally-used techniques into the formal school, maximize use of school facilities and personnel, and introduce technology such as radio. A comprehensive model based on the more successful community projects, is offered with a list of appropriate social criteria whose presence is necessary: a traditional structure of communal self-help; presence of a convincing/charismatic leader; outside intervention such as capital loan funds, technical assistance and training. The model includes communal construction of educational facilities, external loan funds, home tutors and instructional supervisors, support by radio-based instructional materials, commitments to specific income-generating tasks by students and parents for school support, community project management and training, and technical assistance from national sources. Appendices contain project case studies and summaries and other related information. (CM)