This document sets out the requirements of federal law pertaining to confidentiality of student records. It provides guidance for the development of school-district policies on the handling of student records and provides a framework for legal information sharing. The paper discusses in detail each of the major federal statutes and its requirements: (1) the Family Educational Rights and Privacy Act of 1974 (FERPA); (2) the Grassley Amendment to the Goals 2000: Educate America Act; (3) 42 U.S.C. Section 290dd-2 (1994); and (4) the Education of the Handicapped Act. A review of the laws' requirements concludes that, first, each school district should develop and implement clearly stated policies and procedures regarding student records. Second, school districts should fully inform parents and eligible students of their rights, including their right of access to student records and educational materials. Parents and students should also be apprised of situations in which information can be gathered and disclosed without their consent. Finally, school districts should examine applicable state laws. Answers to frequently asked questions are also included. Appendices summarize the provisions of each federal statute and list applicable state laws. (LMI)