Awarding credits based on student mastery of content and skills can remove barriers to increasing student readiness for college and careers, according to a new issue brief released by the National Governors Association. This brief shows how governors can lead efforts to foster alternative methods of awarding credit by working to: (1) Build flexibility in state policy for students to earn credit based on learning; (2) Modify school funding formulas to allocate resources based on student mastery of content and skills as opposed to enrollment; (3) Ensure data systems are linked across state agencies and education providers; and (4) Require public institutions of higher education to accept student transcripts with credits earned by demonstration of mastery. (Contains 12 endnotes.)