Performance Evaluation in Foreign Language (PEFL) is a Title IV-C project based on Krashen's Monitor Model for second language acquisition. As such, it recognizes both natural learning (situations requiring spontaneous oral communication) and formal, traditional learning (reading, writing, translation, grammar, syntax). The PEFL Student Achievement Test, containing written, oral and conversation scales was developed by PEFL teachers to replace grades as an undergraduate admissions criterion. The test was developed for students in their second year of high school French, German, or Spanish. This test and student and teacher attitude measures were administered at the beginning and end of the school year. Achievement differences between PEFL students and a comparison group were not statistically significant. Students' interest in foreign language learning waned during the year. Teachers attitudes toward traditional, audiolingual, and oral language instructional methods, did not change. However, non-PEFL teachers became more receptive to oral language instruction. During the staff development seminars, teachers had difficulty in administering the achievement test. All 20 PEFL teachers were willing to use this method the next year; most felt that their students' attitudes and their own teaching methods had improved. (CP)