The University of Michigan is set to change its grading policy for the College of Literature, Science and the Arts starting in fall 2027. Incoming freshmen will no longer receive traditional letter grades on their external transcripts during their first semester. Instead, the school will use a pass/no credit system to help students adjust to academic life.

School officials state the goal is to reduce the pressure associated with the transition to college. By removing the immediate impact on grade point averages, the institution hopes students will feel more comfortable exploring new subjects and focusing on long-term academic growth rather than just competition. Faculty and staff spent time designing this pilot program as part of a larger push to improve student retention and general mental health.

While final grades will not appear on official transcripts for the first semester, instructors will still provide feedback to students throughout their courses. The university will maintain internal records of these grades for administrative tasks like academic advising, scholarship eligibility, and compliance with external requirements. Once a student enters their second semester, normal grading procedures will resume and affect their cumulative GPA.

This decision places the University of Michigan among other institutions that use alternative grading methods. Schools such as Brown University and Sarah Lawrence College have existing programs that move away from conventional letter grades in various ways. The University of Michigan's program, officially titled Grade Covering, will affect nearly 3,700 first-year students when it begins next year.