This brief summarizes the lessons learned during a February 2010 AYPF study mission to North Carolina that examined how rural education systems are providing high quality instruction and improving the readiness of young people for life beyond high school. Participants learned about how federal and state policies and funding streams affect rural school districts; the unique challenges of providing high quality instruction in rural settings; and innovative approaches to providing comprehensive education in rural communities. The brief outlines several key issues affecting rural education nationwide and discusses how current federal policy priorities affect rural education. The key issues examined herein are: (1) Federal Funding May Favor Urban and Suburban Districts; (2) Rural Schools Utilize Partnerships across Regions, Districts, and Sectors; (3) Technology is at the Heart of Innovation in Rural Schools; (4) There are Unique Teacher Pipeline Considerations in Rural Areas; (5) Transportation is a Central Challenge in Rural Education; (6) Agricultural Education is Evolving in Rural Areas; and (7) Innovative School Models Exist in Rural Areas. (Contains 7 endnotes.)