This study describes an innovative alternative assessment program used in an undergraduate educational psychology course. Subjects were 60 undergraduate students enrolled in a teacher preparation program at a midwestern liberal arts college. Each student was required to demonstrate mastery of course objectives through a course portfolio. The study also investigated the program's effectiveness in terms of students' attitudes and beliefs using both quantitative and qualitative data. The results indicated that many of the outcomes sought by educational psychology teachers (e.g., higher-order thinking, more quality time spent on assignments, and intrinsic motivation) were achieved with the use of alternative forms of assessment. Ancillary benefits in terms of perceived writing and technological skills were identified as well. Positive and negative dimensions of the program were examined. Appendixes present a modified course syllabus and contain the assessment program questionnaire frequencies. (Contains 6 references.) (SLD)