Information on the peer review process for the evaluation of federal grant proposals is presented to help college grants administrators and faculty develop good proposals. This guidebook provides an overview of the policies and conventions that govern the review and selection of proposals for funding, and details the review procedures of the Department of Education, the National Science Foundation, and the National Endowment for the Humanities. Attention is also directed to the manner in which individuals are selected to participate in the review process either as field readers of proposals or as members of review panels. The evaluation of applications in a federal grants competition may involve internal review, external review, or some combination. Common elements in the review process are: initial screening, technical review, program staff review, agency review and approval, and notification of award or declination. Specific information is provided on the following education grant programs: the Comprehensive Program at the Fund for the Improvement of Postsecondary Education, the Office of Special Education and Rehabilitation Services, and the Higher Education Programs of the Office of Postsecondary Education. A list of references that provide information on the grant programs of the three federal agencies is appended. (SW)