This handbook provides general information about participation of private school students in federal education programs and an overview of each federal education program in which those students and their teachers can participate. The handbook includes most of the programs that serve private school students and teachers and summarizes relevant case law, statutes, and regulations. Section 1 provides an overview of private schools and federal education programs, including a brief history of federal legislation affecting private schools, a summary of Supreme Court cases affecting private schools, and answers to commonly asked questions. Section 2 offers guidelines for establishing productive working relationships between private schools and local and state education officials, the federal government role in the participation of private school students and teachers in federal education programs, and the role of private school officials in such participation. Recommendations are offered for public school officials administering federal education programs for private school students. The third section contains suggestions for participating in competitive grant programs. Federal education programs serving private school students are described in the fourth section. Three figures are included. The appendices offer information, sources, and contact persons for both private school administrators and public school personnel who coordinate federal program participation for private school students and teachers. (LMI)