This study examined the effects of participation in Chapter 1 programs on students' educational outcomes. A total of 52 students at an elementary school in Maquoketa, Iowa, were divided into a primary group of students who participated in a Chapter 1 program during grades 1 or 2; an intermediate group of students who participated in a Chapter 1 program during grades 3, 4, or 5; and a nonparticipant group. Several educational outcomes were assessed from kindergarten through grade 5. The relationships between several demographic variables and students' participation in Chapter 1 programs were determined. The following results are reported: (1) the intermediate group exhibited lower IQ scores than the primary and nonparticipant groups; (2) the intermediate group scored lower than the primary and nonparticipant groups on measures of reading proficiency; (3) primary and intermediate group children were assigned to classroom reading groups of an average or below average level; (4) intermediate group children had lower grade point averages in science and social studies in grades 4 and 5 than nonparticipating children; and (5) the intermediate group received lower teacher ratings of work habits than the primary and nonparticipant groups. It is concluded that Chapter 1 participation has a sustained effect on students' educational outcomes. A 29-item reference list is provided. Copies of student progress reports are appended. (BC)