The student pilot had just taken off for a flight that was to remain in the traffic pattern when the airplane's engine began to lose power about 150 to 200 feet above ground level (AGL). Soon thereafter the engine lost all power, and the flight instructor took control of the airplane. Because there were trees and power lines in his flight path, the instructor found it necessary to make a descending turn of about 150 degrees in order to attempt a forced landing. Just as he was rolling out of the turn the airplane impacted the terrain with sufficient force to result in substantial damage to the fuselage and one wing. A post-accident inspection overseen by a Federal Aviation Administration Airworthiness Inspector determined that the engine-driven fuel pump had failed. During the inspection process the engine was supplied with an alternate source of fuel, and it ran without interruption.