With 90% of about 4.7 million Mexican Americans living in the 5 Southwest States and 80% of these living in an urban environment, Mexican American students face several educational problems in the urban setting, including high dropout rate, low educational achievement, and ineffective institutions. Schools fail to recognize the cultural richness of the student's bilingualism which can be made a positive force helping to retain personal identity and self-esteem. Possible solutions lie in the areas of teacher and administrator training, focusing on in-service curriculum, pre-service curriculum, recruitment and retention of teacher candidates, and scholarships and aid programs. By developing relevant curriculum and materials through redirecting available federal funds and through the community and school working together, the problems of Mexican American students in an urban environment can be met. Several statistics are included. (CM)