"504 vs. IEP: Which One Is Right For My Child?" from http://theparentingplayground.com outlines the decisions involved in choosing between a 504 plan and an IEP.
Author Molly Matava does an excellent job detailing the process that parents face when they are looking for strategies to support their children's success in school.
The simplest way to differentiate the need for an IEP from the need for a 504 plan comes down to the need for specialized instruction in addition to accommodations. If a student needs more than accommodations, a student needs an IEP.
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