Difficulties and rewards in using state assessment policy to benefit both students and the state are reviewed. The questions examined in this guide will help state policy makers know the questions they should ask about whether, what, and how well students are learning. Questions were developed from four seminars in 1989, 1990, and 1991 on assessment and undergraduate education sponsored by the Education Commission of the States in cooperation with the National Governors' Association and supported by the Fund for Improvement of Postsecondary Education. The first section, "Importance," describes the history behind the current assessment movement and its significance. The second section, "Trends," examines state and campus assessment trends and how events have shaped what has happened in education. The third section, "Policy Development," summarizes lessons learned from state and college involvement in assessment. The fourth section, "Improvement of Undergraduate Education," discusses how to use results to ensure that assessment leads to improvement. Five resources for additional information are listed. (SLD)