This paper presents management considerations for planning an in-school suspension program applicable to handicapped students and reviews relevant court rulings affecting formation of suspension and expulsion policies. The Supreme Court's 1975 decision in "Wood v. Strickland" established that a student cannot be deprived of the right of education without due process. "Goss v. Lopez" limits suspension to 10 days. Appellate court rulings establish that a handicapped student can be expelled only if misbehavior is not directly related to the handicapping condition, if the Education for All Handicapped Children Act due process procedures have been applied, and if expulsion does not result in cessation of educational services. Although in-school suspension is developing, courts have not addressed this alternative relative to either handicapped or nonhandicapped students. Advantages of this procedure include close student supervision and a meaningful learning experience. In-school suspension should not change the student's placement, because the program design is educational, not just detentional, in nature. Planning should consider three areas: operating policy, curriculum, and program management. The report recommends management considerations, including systematic monitoring and feedback to students. Awarding points would allow systematic monitoring and regular feedback to students concerning their performance. Decisions made from objective data facilitate a student's return to regular placement or need for other options. (CJH)