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The issue of the underperformance of minorities and low-income students in K-12 schools is not a new one. Theories introduced to explain this underperformance are many and diverse. However, none of these theories address how collective factors—unique to minority and low-income families—impact children’s educational engagement. These factors include, but are not limited to, neighborhood disparities, educators’ perceptions of students and families, educational labeling, and the criminal justice system. Using CRT as a lens, this paper examines ways in which racism creates stereotypes and negative perceptions that impact minority and low income families. In turn, these stereotypes and perceptions then shape their environments, seep through the academic walls, and create disengagement in education for minority and low-income students