This policy statement focuses on the policies and practices of graduate education and how they are being affected by the accelerated development of distance education at the postbaccalaureate level. Following an introduction and a review of two earlier policy statements (1977 and 1989), the discussion examines the current context of the rapidly developing area of distance graduate education, including the emphasis on accountability for educational investments, admissions policies that increase student diversity, and the revolutionary changes in information technology. Other sections of the report focus on the defining elements of nonresidential, off-campus, and distance education; provide an historical perspective on American distance education; examine the mission, market, resources, competition, and the new learning paradigm for distance graduate education; examine the nature of graduate education and the role of graduate administration; and discuss distance graduate education policies and practices, including quality assurance and equivalency, generic institutional policies and practices, faculty issues, organizational issues, program design and delivery, collaborative groups, testing and evaluation, faculty-student interaction, mentoring, student-student interaction, instructional resources, and student support services. A final section discusses distance education outcomes, including student and faculty evaluation, student achievement, and student career outcomes. (Contains 23 print and 6 electronic references.) (RAB)