The grades which foreign students receive are not always based on the same criteria as the grades assigned to native American students. The use of standardized test scores provides a common data base from which to evaluate the relative proficiency level of foreign students. This study examines the Test of English as a Foreign Language (TOEFL) and the English Placement Examination (EPE), the two tests most frequently used to place foreign students. The objectives of this study are as follows: (1) to determine the predictive ability of the TOEFL and the EPE using first and second semester graduate grade point average and also using a grade in a remedial English course as the criterion, (2) to assess the concurrent validity of the TOEFL and the EPE, and (3) to estimate the magnitude of the change in the TOEFL scores after the subjects have lived in an English speaking country and taken a remedial English course for one semester. (BB)