The purpose of this paper was to examine the impact of exit exams on the dropout rate. Data was gathered from several research articles. The most impressionable research revealed exit exams have a negative effect on minorities, especially black males. Results indicate by 2012, that exit exams in 25 states will affect 81 percent of minority high school students. Overall, results were inconclusive if exit exams are decreasing or increasing the dropout rate. However, research does show that exit exams have a negative impact on minorities. Statistics show that more minorities are dropping out and failing exit exams. Although exit exams hinder some students, on the other hand, they are helping administrators and teachers to become more accountable for the instruction being delivered in schools. States with and states contemplating exit exams need to strategically consider the following: (a) why other states do not have exit exams and (b) does the exit exam influence the dropout rate.