Grettings Georgia!
The negative effects of grouping students based on academic achievement 1) labels those students who are less academically successful, 2) probably see less participation for those who struggle, 3) lowers self-esteem, and 4) doesn't provde that diverse interaction that students need for learning.
Found the following on the internet which wil further help to answer your question.
http://ctl.du.edu/index.php/teaching-resources/du-teaching-resources/213-diversity-in-the-classroom
Diversity in the Classroom
A resource for DU faculty members
Developed by the Center for Multicultural Excellence, University of Denver
One of the critical components of a successful classroom that maximizes the educational benefits to all students is safe space… >>>