The study involving 20 hearing and behavior disordered children (8-16 years old) investigated the hypothesis that children who receive individual and/or group counseling, an individualized psycho-educational program in a therapeutic milieu, and whose parents receive individual and/or group counseling will demonstrate more progress in their social and personal interaction with peers, teachers, and other significant adults and in their academic achievement than would students in a similarly identified group who receive only the available educational program in a regular school setting. Prior to and following the treatment period, students were administered achievement tests and were rated by teachers on behavior, cognitive levels, and learning styles. Parents or guardians of each student were also interviewed. Results indicated that Ss receiving the special treatment demonstrated greater progress in all areas (though measures of progress were not statistically significant in academic areas) when compared to a similar group of students who remained in the regular school setting. (Appendixes, which make up approximately half the document, include sections on identification, evaluation, placement, confidentiality of data/records, due process and procedural safeguards, definition, special education program and services, agreement forms, end of month observation form, and monthly progress report.) (SBH)