The role of differential values as they relate to educational achievement was investigated by examining school records of and administering the Rosenberg Self-Esteem Scale and questionnaires eliciting personal information, character trait preferences, and perceptions of self, ideal self, and others to 328 Indian and 271 non-Indian students from 7 rural North Dakota high schools. Also surveyed were 64 teachers. Findings supported notions of Indian educational underachievement, indicating that the values of Indian students, as a group, were quantifiably and qualitatively different from those of their teachers. Self-identity was different for Indian and non-Indian students. Comparisons between high and low achieving Indians showed that character trait preferences of high achievers were more closely aligned with those of their teachers than were those of low achievers. High achieving Indians valued the educational process to a greater degree than low achievers, ranked school-related character traits more favorably, expressed more positive attitudes toward their teachers, were less critical of non-Indians, and appeared to be less alienated from the non-Indian world while not rejecting their "Indianness." Neither high nor low achievers were more likely to participate in traditional Indian activities. Ideas regarding how schools serving Indians might achieve the goals of acculturation were presented. (Author/NEC)