Enter Geo. Go to the bar area on the Left side of town. Talk to Gilbert after he talks to Miss Kathinja. Offer to help him.
Talk to the three kids in the Bar area and tell them what they want to hear. Talk to them again and they should say that they will be back in school. If not, talk to them again and take the other choice.
Go to the Mall area on the right side of Geo. Talk to the two kids, leave Upper Path, and go to the Magic University. Talk to the two kids in the courtyard and the one in the entrance hall. Go to the Library and talk to the two kids there. Go to the mall area and go into the bar to find two more kids. Go to the Item Shop and talk to the three kids. One of them will only return to school after all the other kids have been convinced.
Upon Completion: Return home, talk to Lil' Cactus, go downstairs (watch him write the Event on the leaf), and go back upstairs to save your game before continuing.