High school academic eligibility rules for interscholastic athletic participation have been imposed by 50 states and the District of Columbia. The purpose of the eligibility rules is to emphasize excellence in academics over athletic performance and to enhance the academic performance of athletes. This policy paper synthesizes current literature, reports on the findings of states that have evaluated the effects of the policies; and clarifies issues which require further study. The document is organized in the following sections: (1) academic eligibility standards and athletic associations; (2) academic eligibility standards and the States; (3) academic eligibility standards and the law; (4) evaluations of extracurricular participation and school performance; (5) effects of high-stakes academic requirements on athletic participation; and (6) alternatives to high stakes. Informants' suggestions formed the basis for policy recommendations such as: tying eligibility rules to academic support programs, extending participation in extracurricular activities, establishing greater flexibility for individual circumstances, and levying stringent standards for participation in interscholastic athletics. (Contains approximately 40 references.) (LL)