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 (ages 11–14; Study 1, N = 277). 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 (ages 11–14; Study 2, N = 206).