The University of Michigan's College of Literature, Science, and the Arts announced in August 2026 that starting with the fall 2027 entering class, first-semester letter grades will no longer appear on official transcripts. Students will receive a P (pass) or NC (no credit) on their transcript instead. Internal grade records are maintained, GPA starts in the second semester, and there is no opt-out.

Michigan made news this week when its College of Literature, Science, and the Arts — the university's largest college — announced it will stop reporting letter grades on official transcripts for first-semester freshmen starting fall 2027.

The change is designed to ease the transition into college and address the mental health pressures students face during the hardest stretch of freshman year. First-year students will still receive traditional letter grades from their professors. Those grades, however, will not appear on the official academic transcript. Instead, transcripts will show a "P" (pass) or "NC" (no credit) for every first-semester course.

According to LSA's announcement, the goal is to create "an environment where college students can acclimate to the demands of a University of Michigan education and pursue new academic challenges." LSA officials added: "We believe that covering grades will help students start strong and curb the mental health crisis unfolding among college-aged individuals."1

What the Policy Actually Does

Here is exactly what changes — and what stays the same — for incoming LSA freshmen in fall 2027:

What changes:

  • Official transcripts will show P or NC instead of letter grades
  • First-semester courses will not factor into your cumulative GPA
  • No opt-out: every incoming LSA freshman is automatically enrolled in this system

What stays the same:

  • You still receive letter grades from your instructors
  • Internal grade records are maintained by the university
  • Starting in your second semester, standard letter grades count toward your GPA for the rest of your time at Michigan

~19,000

Why Michigan Is Doing This

The college student mental health crisis has been building for years. For many students, the first semester of college — with unfamiliar grading expectations, new social dynamics, and no built-in support system — is where anxiety and depression hit hardest.

Michigan is betting that removing high-stakes grades from the official transcript during this transition will let students explore classes and take intellectual risks without fearing a permanent mark. The policy also aims to reduce the intense competition that develops in large introductory lecture courses.

That is a real argument. But removing grade accountability for four months also removes one of the clearest feedback signals students have about how they are actually doing. Not everyone lands in the same place on that tradeoff.

Michigan Is Not Alone

Michigan joins a small but growing group of schools that use P/NC grading for first-year students. According to Inside Higher Ed, Johns Hopkins University, Goucher College, and Swarthmore College have adopted similar policies for incoming students.2

Michigan's record-breaking 115,000+ applications for fall 2026 suggest the university is not worried about attracting students. If anything, the policy signals that Michigan is competing on something other than prestige — it is competing on the experience of actually attending.

When comparing schools, ask admissions offices directly: "What does first-semester academic support actually look like — not in the brochure, in practice?" Ask about advising ratios, mental health wait times, and whether P/NC is available as an option or mandatory for all students. The distinction matters. Campus mental health resources vary enormously from school to school.

The Part Most Coverage Is Missing

The internal grades still exist.

Michigan will maintain internal letter grade records. Those records can be used for:

  • Academic advising decisions
  • Eligibility for certain scholarships and academic awards
  • Internship and professional opportunity applications where the university is involved
  • Transfer or major-change scenarios within the university

Your official transcript shows P or NC. But the grade lives in the system. And if you switch into a competitive major or apply for honors programs, those internal records are part of the picture.

If you are pre-med or pre-law and considering Michigan, confirm with specific programs how they view P/NC first-semester grades. Medical and law schools generally do not penalize school-wide P/NC policies the way they would individual opt-in choices — but verify this directly rather than assuming. Do not rely on general advice for a decision with this much downstream consequence.

What This Means for Your College Choice

If you are deciding between Michigan and another school, this policy is worth factoring in. First-semester grades matter more than most students expect — not because one bad grade ends your GPA, but because habits and confidence formed in the first eight weeks tend to persist.

A P/NC semester can give you genuine freedom to explore. It can also reduce an accountability structure that some students need. Neither outcome is guaranteed, and Michigan itself will not know for several years whether the policy achieves its stated goals.

What is certain: starting with the fall 2027 entering class, no letter grade from your first semester at Michigan's LSA will appear on your official transcript. That is a meaningful change from how virtually every other large American university operates.

Next Steps

  • Applying for fall 2027? This policy applies to the entering class of fall 2027 — the current application cycle. You will be in the first cohort affected.
  • Comparing schools now? Use our guide to choosing a college and ask each school specifically about first-year academic policies, not just overall rankings.
  • Worried about the freshman year transition? Our guide on how to survive freshman year covers the academic and social adjustments that trip up most students in the first semester.
  • Already enrolled at Michigan? Check with your LSA advisor to confirm whether this applies to your cohort and what the internal grade records mean for your academic plan.

Footnotes

  1. University of Michigan College of Literature, Science, and the Arts. (2026). Pass/Fail Grading Policy Announcement. University of Michigan LSA. https://lsa.umich.edu/lsa/academics/lsa-academic-policies-and-procedures/grading-and-transcript-notations/pass-fail-grading.html ↩

  2. Inside Higher Ed. (2026, August 5). UMich College Shifts to P/NC Grading for First-Year Students. Inside Higher Ed. https://www.insidehighered.com/news/quick-takes/2026/08/05/umich-college-shifts-pnc-grading-first-year-students ↩