This document analyzes and evaluates the exceptional graduate admissions program at Pennsylvania State University as instituted in 1970. Under this program, traditional admissions criteria are dropped to enable disadvantaged students to attend graduate school. (A previous survey of the Council of Graduate Schools showed that 59% of the member graduate schools have adopted similar programs.) On the basis of this study, the changes in graduate admissions policies at Penn State do not appear to adversely affect the quality of graduate programs. It further appears that the individual departments are capable of selecting students who fail to meet certain departmental standards, but nonetheless perform acceptably in the programs. Traditional graduate admissions policies do not appear to serve their ostensible purpose. They do not seem to afford substantial efficiencies to society by restricting graduate education to those most likely to benefit; rather, they have historically restricted persons from certain social, racial, or economic backgrounds. It would appear that institutions of higher education are coming to that conclusion. In the absence of some otherwise compelling evidence, equal consideration of all applicants would seem to be a wise policy. (HS)