The longitudinal study assessed the psychological and educational sequelae of premature birth through the early elementary school years, to determine whether children born prematurely constitute a high risk population in terms of regular school progress. Subjects included 78 children with birth weights of 2500 grams or less, 78 children of normal birth weight whose gestation periods were 37 weeks or less, and 85 controls whose birth weights were greater than 2500 grams and gestation periods greater than 37 weeks. Measures included a 4-month neurological exam, 8-month psychological exam, 12-month neurological exam, 4-year intelligence test, 5-year school readiness test and ITPA, and teacher reports from the ages of 7-11 years. Results indicated that birth weight rather than gestational age is the major predictor of psychological and educational impairment. Subjects low in both birth weight and gestational age evidence an initial disadvantage which was gradually dissipated, with small-for-date subjects eventually showing greater psychological and educational disability than those who were low on both indices. (KW)