If you are the parent of a high school student who has spent years working toward college admission, you’ve probably heard the message loud and clear: work hard, earn good grades, and your effort will pay off.

So what happens when a university tells students that their grades during the first semester won’t count toward their GPA and won’t appear as traditional letter grades on their transcripts?

That is exactly what the University of Michigan freshman grades policy will do.

Beginning in fall 2027, the University of Michigan’s College of Literature, Science, and the Arts (LSA) will launch a first-semester “grade covering” pilot for incoming first-year students. Instead of having traditional letter grades appear on their transcripts, students will receive either a P (Pass) or NC (No Credit) for their first-semester courses. Their actual grades will still be assigned by professors, and students will receive feedback on their academic performance, but those grades will not be included in the student’s GPA or appear on the external transcript.

The university says the goal is to help freshmen adjust to college, reduce academic pressure and encourage students to explore subjects without worrying that one bad grade will permanently affect their academic record.

And I understand the reasoning.

The transition from high school to college can be brutal.

Students go from having parents, teachers and counselors reminding them about assignments and deadlines to suddenly being responsible for managing their own lives. They are juggling roommates, laundry, meals, social lives, jobs, activities and an entirely different level of academic independence.

But as a parent, I can’t help asking another question:

What happens to the student who actually wants to earn an A?

The University of Michigan’s Reasoning

U-M says the program is designed to help students “establish early momentum” and acclimate to the demands of a Michigan education.

The university also wants students to feel comfortable exploring academically.

For example, a freshman might want to take a challenging course outside their comfort zone without worrying that a disappointing grade will follow them throughout college. The university hopes removing the GPA consequences will encourage curiosity, collaboration and learning for its own sake rather than competition.

There is also a mental-health component to the decision.

University officials argue that reducing the pressure surrounding grades can help students navigate the transition into college at a time when mental-health concerns among college students have become increasingly serious.

And there is something appealing about giving an 18-year-old permission to make mistakes.

But there is another side to this conversation.

What About the Student Who Wants to Excel?

Let’s say your student arrives at Michigan determined to make the Dean’s List.

They studied hard in high school. They worked for their grades. They took AP classes. They learned how to manage a demanding workload.

They arrive at college and discover that the A they earn in their first semester won’t actually increase their GPA.

That can create a strange incentive structure.

The student who earns an A and the student who earns a C may both ultimately see a “P” on their transcript.

Yes, their professors know the difference.

Yes, the university retains the actual grades internally.

And yes, those grades can be used for certain university purposes, including academic advising, scholarships, awards and other opportunities. U-M also says students can use their actual grades when applying for internships, majors outside LSA and other academic or professional opportunities.

But the external transcript doesn’t communicate the difference.

And that’s where I think parents need to pay attention.

Could Students Take Advantage of the System?

Let’s be realistic.

Whenever you remove a consequence, some people will naturally test the boundaries.

That doesn’t mean Michigan students will suddenly stop working.

These are high-achieving students who were admitted to a highly selective university. Many will continue to work extremely hard because they are intrinsically motivated, want to master the material, or have ambitious career goals.

But others may look at the policy and think:

“If my grade doesn’t affect my GPA, why should I work that hard?”

That is the potential problem.

A student who knows a C will be treated the same as an A on the external transcript might decide that a B is good enough.

Another student might prioritize social activities over studying.

Someone else might choose the easiest courses rather than the most challenging ones.

And some students may simply do the minimum necessary to receive credit.

That is not necessarily “abuse” in the traditional sense. It’s more accurately a change in incentives.

Students respond to the systems we create for them.

If the system rewards mastery, students have an incentive to pursue mastery.

If the system rewards simply passing, some students will aim for passing.

But Here’s Something Parents Should Know

The policy does not mean students can completely blow off their first semester and walk away without consequences.

Michigan will still have access to the actual grades.

The university says those internal grades may be used for academic standing, financial-aid eligibility, athletic eligibility, scholarships, awards and other administrative purposes.

And students will still need to demonstrate that they can succeed once traditional grading begins.

Starting with the second semester, letter grades will again appear on transcripts and count toward GPA.

In other words, the first semester isn’t really consequence-free.

It is more like a protected transition period.

That distinction matters.

What About Scholarships?

This is one of the areas parents should watch closely.

Michigan specifically says it will retain first-semester grades for scholarship and award purposes.

That means a student who earns excellent grades isn’t necessarily losing every benefit associated with that achievement.

However, families should ask questions about scholarships administered outside the university.

If a private scholarship requires a specific GPA, how will the organization evaluate a freshman whose official transcript says P/NC?

Will the scholarship provider accept the university’s internal grade report?

Will the student need to provide additional documentation?

Those questions could become increasingly important if other colleges adopt similar policies.

What Happens to the Student’s GPA?

This could actually be a significant advantage for students who struggle during their first semester.

Imagine a student earns:

• A
• A-
• B+
• B
• C+

during the first semester.

Under a traditional system, those grades become part of the student’s cumulative GPA.

Under Michigan’s new LSA policy, those grades won’t be calculated into the GPA.

When second semester begins, the student’s GPA essentially starts with the grades from that semester.

For a student who struggled while adjusting to college, that’s a substantial second chance.

But there is an unintended flip side.

A student who earns straight A’s during the first semester doesn’t get to use those grades to establish a strong GPA cushion.

And that could matter later.

College gets harder.

Courses become more specialized.

Students move into upper-level classes.

A strong freshman GPA can provide some protection when a difficult sophomore or junior course brings the GPA down.

Under this system, that first-semester cushion disappears.

Does This Hurt High-Achieving Students?

This is where I think the debate gets interesting.

The university’s argument is essentially:

“We want students to learn because they value learning—not simply because they want a higher GPA.”

That’s a wonderful goal.

But parents know something about teenagers that sometimes gets overlooked in higher education policy:

Motivation comes in many forms.

Some students are naturally curious.

Some are motivated by competition.

Some want academic recognition.

Some want scholarships.

Some want admission to graduate or professional school.

Some want their parents to be proud.

Some want to prove something to themselves.

And some simply want the satisfaction of seeing an A on the page.

There is nothing inherently wrong with any of those motivations.

Grades are not the only measure of learning, but they are still an important form of feedback.

Could This Encourage Students to “Game” College?

Potentially.

A student might reason:

“I’ll take this really difficult class because my grade doesn’t matter.”

That could actually be a positive use of the policy.

But another student might think:

“I’ll take five classes, join every club, go out every weekend and worry about academics next semester.”

That’s where parents should be concerned.

The policy could unintentionally encourage some freshmen to delay developing the academic habits they will need later.

And there is an important difference between giving students room to fail and teaching students that failure doesn’t matter.

Failure can be an incredibly valuable teacher.

Getting a disappointing grade can force a student to ask:

What went wrong?

Did I procrastinate?

Did I underestimate the workload?

Did I study the wrong way?

Did I need tutoring?

Did I wait too long to ask for help?

Did I choose too many activities?

Those lessons are part of becoming an independent college student.

The Bigger Question: What Are Grades For?

This may ultimately be a much bigger conversation than Michigan.

Are grades primarily about:

Measuring learning?

Motivating students?

Ranking students?

Providing feedback?

Helping employers and graduate schools evaluate applicants?

Or are they simply one tool among many?

Michigan’s experiment challenges the traditional idea that every grade earned by a college student must become part of a permanent academic record.

And that could be a very interesting experiment.

The University of Michigan isn’t the first school to explore this idea. MIT has had a first-year grade-covering program dating back to 1968, and other institutions, including Caltech, Swarthmore and Wellesley, have implemented similar approaches.

So this isn’t necessarily a radical new concept.

But it is certainly one worth watching.

What Should Parents Tell Their Students?

If your student attends a college with a similar policy, I wouldn’t tell them:

“Your grades don’t matter, so don’t worry about them.”

I’d say the exact opposite.

Your grades matter because your education matters—even when the grade doesn’t appear on your transcript.

The first semester should be treated as an opportunity to learn how to succeed in college.

Learn how to study.

Learn how to manage your time.

Learn how to talk to professors.

Learn when to get tutoring.

Learn how to balance academics and social life.

Learn what happens when you procrastinate.

Learn what kind of student you want to become.

And if you earn an A?

Celebrate it.

Even if it doesn’t appear on the transcript.

Because the real prize isn’t the letter.

It’s becoming the student who knows how to earn it.

My Take as a College-Planning Parent

I can understand why Michigan wants to give freshmen some breathing room.

I’ve watched students spend years worrying about getting into college, only to arrive on campus and immediately feel like they have to prove themselves all over again.

That pressure is real.

But I also worry about sending young adults the message that removing the grade removes the consequence.

Life doesn’t work that way.

There will be disappointing test scores.

There will be rejected internships.

There will be difficult professors.

There will be job interviews that don’t go well.

There will be mistakes.

There will be failure.

And learning how to recover from those experiences is part of growing up.

So perhaps the best way to look at Michigan’s experiment isn’t as “grades don’t matter.”

Instead, students should see it as:

“Your first semester is a chance to learn how to succeed before the grades really start counting.”

That’s a valuable opportunity—if students use it that way.

And parents may have an important role in making sure they do.

The Bottom Line for Parents

If your student is considering the University of Michigan, remember that this policy is not university-wide. It applies to first-year students in the College of Literature, Science, and the Arts beginning in fall 2027. Students in other U-M colleges are not covered by this particular pilot.

And perhaps the most important message parents can give their students is this:

Don’t confuse “not on the transcript” with “doesn’t matter.”

Your first semester is still laying the foundation for the next four years.

The grade may be covered.

The learning isn’t.