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Creating a group (of students) within a Moodle course can be useful for team grading, team projects and team access to specific files/folders. 
Video Tutorials:

Creating Groups

  1. With editing on access the "Administration" block on the right side of the page
  2. Click on "Users" and then "Groups".

  3. On the "Groups" page click on "Create Group". Give the group a name and then click "Save changes".
  4. Back on the main "Groups" page. Click on the name of the group you created and assign students using the "Add/remove users" button.
  5. Continue creating groups and adding students or alternatively, use the Auto-create option to create any number of groups. Add student maually, or allow Moodle Groups to randomly choose students in each group.

View examples of Collaborative Learning or Group Activities for online or classroom


Example of Restricting Access to Groups for Folders/Files, etc.
  1. Go to the location of where the folder/file is located. (Make sure you are in "Editing" mode) and click on "Edit settings"

  2. Once you are on the folder/file you wish to edit click on "Add restriction..." under the "Restrict Access" tab. Choose the option for "Group". Click the Group button and add the appropriate group.

  3. After that, only students in the specified group will see the contents of the folder or file. 

See all about using Groups in Moodle Docs.