Beginning in fall 2027, the policy will apply to incoming students at the College of Literature, Science, and the Arts (LSA), the largest academic division at the University of Michigan which currently enrolls roughly 3,500 freshmen across more than 80 majors.

The university will keep internal records of the grades earned by LSA first-year students during their first semester. These grades may be used for compliance purposes, academic advising, scholarships and awards, as well as applications for internships, majors outside LSA and other academic or professional opportunities.

On their transcripts, however, students will receive only a "P" (pass) or "NC" (no credit) designation for first-semester courses, and these results will not be included in their GPAs.

Starting in the second semester, students' actual grades will be recorded on their transcripts and included in their GPAs for the rest of their time at the University of Michigan, which is ranked third among public schools in the U.S. in 2026 by the U.S. News & World Report.

Students walk outside the Literature, Science, and the Arts Building at the University of Michigan in Ann Arbor, Michigan, U.S., June 28, 2026. Photo from the university's Facebook page

"We believe that covering grades will help students start strong and curb the mental health crisis unfolding among college-aged individuals," LSA said in its notice.

"Our goal is to help first-year students acclimate to the demands of college and allow intrinsic motivations to guide personally meaningful academic journeys — core elements of a liberal arts and sciences education."

The university said withholding first-semester grades is intended to help freshmen adjust to college life, encourage intrinsic motivation to learn and "foster a culture of connection and collaboration rather than competition."

"They can explore a subject that may not come easily to them or take a course in a new field without the fear that a low grade may have long-term consequences," it said.

The move follows findings from the 2024-25 Healthy Minds Study, which surveyed students at 135 U.S. colleges and universities and found declines in depression, anxiety and suicidal thoughts, according to The University Record, the University of Michigan’s official publication.

The study found that 18% of students reported symptoms of severe depression, down from 23% in 2022. The share reporting suicidal thoughts also fell to 11%, from 15% over the same period.

Rosario Ceballo, dean of LSA, said the pilot program could help address high levels of stress, depression and anxiety among students while advancing the college's broader educational mission.

"I believe this pilot program has the potential to not only address the alarming rates of stress, depression and anxiety among our students, but to deliver on our core promise as a liberal arts and sciences college," she told The University Record.

Faculty members have voiced strong support for the policy. Derek Peterson, a professor of history and African studies and former chair of the University of Michigan Faculty Senate, told ABC News that first-year students face substantial life adjustments, including living away from home, working jobs, and managing family and societal pressures.

Peterson noted that the grading buffer allows students to take intellectual risks without severe consequences if they struggle in a challenging course.

"Whatever we can do in terms of policy to enable our students to thrive in a difficult and challenging world that bears on their mental health profoundly, I think that's very much the right thing for us to do," Peterson said.

The policy has also drawn discussion regarding its broader implications for higher education.

Shea Vance, a reporting fellow at The Chronicle of Higher Education, told NPR that some learning specialists worry the shift could reduce student motivation or contribute to grade inflation. Vance noted that the policy reflects an ongoing debate over whether higher education is moving away from traditional grading metrics and toward competency-based assessment.