This research tested a social-developmental process model of trust discernment. From sixth to eighth grade, White and African American students were surveyed twice yearly. African American students were more aware of racial bias in school disciplinary decisions, and as this awareness grew it predicted a loss of trust in school, leading to a large trust gap in seventh grade. Loss of trust by spring of seventh grade predicted African Americans' subsequent discipline infractions and 4-year college enrollment. Causality was confirmed with a trust-restoring "wise feedback" treatment delivered in spring of seventh grade that improved African Americans' eighth-grade discipline and college outcomes. Correlational findings were replicated with Latino and White students.