A brief overview of the societal context for current grading practices forms the background for a discussion of alternatives to the assignment of letter or numerical grades to represent student performance. According to the author, in order to meet the criteria for effective feedback, schools and colleges must undergo several fundamental attitude changes. He proposes the following: (1) that only criterion-based, nonjudgmental feedback and individualized reporting methods which reinforce each child's self-image be used in grades K-8; (2) that each high school decide upon its own criteria for student placement in courses; (3) that clear, precise criteria for a high school diploma, based on demonstrated knowledge and skill mastery, be established; and (4) that each college and university should develop its entrance requirements based on a student's demonstrated ability to read, write, and analyze at a specified level determined by each college's faculty. One section of this document concentrates on specific methods for changing the grading system. Several sample evaluation forms are appended. (MV)