The video below will walk you through how to create groups. Note, that the creation of groups is done under Course Admin. Students do not have access to the Groups link, so they will not be able to select their own groups within D2L.
Also, note the terminology at the beginning of the video. Categories have groups within them. Students go into the groups. It is recommended that you use the Category name as the name of the activity for which you’ve assigned groups.
Groups are one of those topics that some faculty require in all of their classes, while others don’t use it at all. However, it’s one of those things you should know how to do. Groups can be helpful in discussions, assignments, lockers, even in the gradebook. Here’s how to create groups:

Go to the course you wish to make groups in and click on “Groups” under “Course Administration”. Then, because you likely haven’t created any new groups, you will need to click on “New Category”. Please note, this is not the group itself, but rather the reason you are creating the groups. If you are creating groups for class-wide activities, then you can simply name your category “Class Groups”.

Once you have clicked on the “New Category”, you can name your category as well as a description of it. Then, select the type of enrollments for the group. You can create a number of groups, groups of a certain size and choose whether students can pick their own group.

Lastly, directly from here, you can create one of three areas where your groups can interact. So, you might want a group of students to participate in a closed discussion area. Maybe, you want them to turn in an assignment, but want them to use the Locker to exchange files first. Any combination of the three you can set up. Of course, if you just want the groups and will determine how to use them later, you can not check any if you wish.

One last note about creating groups, instructors have access to all groups. This means if you set up a group, you are still able to go into the group and participate as the instructor.
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