How can I help somebody build academic confidence?

I’m tutoring a fellow student and she’s improving greatly. When we work together, she has a good grasp of the material and only needs a few nudges to get her in the right direction for problem solving. Her brain knows this stuff.

Tests are another matter though. She’s failed 3 exams, including a retake (though the score was better, it was still not passing). I know she’s crippling herself with anxiety and I feel so badly for her crying every night because she feels “stupid”.

If it isn’t the material itself, does anybody have any ideas for things I could do to help boost her self-esteem and gain confidence?