How to solve the peer group problem? As far as I know it's extremely difficult, even more than reforming home life. You can split up peer groups and distribute their members into peer groups with different mindsets and they will generally conform, but the ratio has to be quite steep towards the peer group you're integrating into. I don't know what the number but I would guess something like 15 to 1. There's definitely not enough middle and upper class classrooms to go around to house all kids from more troubled areas under my stated assumptions. But perhaps the process could be incremental?
A fair point. Although I came to the conclusion when I was in school that while the impact of your home life is important, providing a positive initial experience with school and having high expectations for scholastic performance can do a lot to improve educational outcomes. Perhaps even enough impact to counteract the lack of parental involvement/motivation for education for some.
If you want poor kids to do better, you have to improve their home life.
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2528798/