The purpose of this study was to determine whether the policy that allows students to challenge the first year of the associate degree nursing program at Castleton State College meets the needs of challenging students and does not handicap either students or faculty in meeting learning requirements. Successful challenging students (n=9), students eligible to challenge who did not do so (n=2), nursing faculty (n=6), and directors of two other associate degree nursing programs responded to open-ended items on a pretested questionnaire. All four respondent groups considered a challenging policy valid; they felt it should be continued to both prevent course content repetition and to save students time and money. There was a mixed response on what testing method better samples student knowledge. Challenging students felt national examinations were satisfactory, while faculty felt such examinations were inadequate and supported, instead, using teacher prepared exams. Some faculty felt too many credit hours were awarded to challenging students. Approximately one-half of challenging and both non-challenging students felt handicapped. Faculty concurred and indicated that students were particularly weak in some areas. Policy changes are recommended. A bibliography and a copy of the survey instrument are included. (TR)