The National Association of School Psychologists' position on 3-year evaluations for handicapped students calls for a flexible, individualized approach to student evaluations, rather than a standardized testing system. Specific issues to be addressed by these evaluations are discussed, including effectiveness of the student's individual education program, appropriateness of current interventions, and current status of eligibility for special education. Factors such as age, severity of handicap, and other sources of information available to the evaluation staff are also addressed. The primary goal of special education is considered to be transition by the student into mainstream educational institutions whenever possible. (PB)