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Economic Insight > Blog > Investment > Grade Inflation Is Real: Here’s What It Means For Grads
Grade Inflation Is Real: Here’s What It Means For Grads
Investment

Grade Inflation Is Real: Here’s What It Means For Grads

EC Team
Last updated: June 6, 2025 3:02 pm
EC Team
Published June 6, 2025
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Key Points

  • The average GPA is rising, but the test scores are not, indicating broad grades of inflation.
  • Parents and universities are increasingly misled by their inflated grades, undermining accountability and preparation.
  • Standardized tests are bringing returns as performance loses value and policymakers are encouraged to restore grading rigor.

Grade inflation is quietly restructuring American education. The idea of ​​grade inflation is that teachers are giving students better grades for the same (or lower) work quality as before. There are many causes, from school and state policies to parental pressure, but the end result is clear. “A” is not the same as “A” as 10-20 years ago.

Since the Covid-19 pandemic, schools have reported a sharp increase in average grades, even as test scores decline. In 2021, ACT Test Taker recorded its lowest score for over a decade, earning its highest GPA ever. Even students at the 25th percentile of ACT performance recorded GPAs above 3.0.

In high school mathematics, the average adjusted GPA rose from 3.02 in 2010 to 3.32 in 2022. Activities. These numbers suggest the average of B+ despite the continued decline in national preparation for mathematics. English, science and social studies have seen similar patterns, but mathematics has the steepest inflation.

What once was occasional concern among educators has grown into a systematic issue. a Fordham Research Institute A study using data from North Carolina revealed that B-grade Algebra I often failed relevant end-of-course exams. This trend has only accelerated since then.

Another Studying with San Diego’s voice We looked at San Diego Area High School’s achievements and compared them to the number of students who passed the state’s competency test. The gap is troublesome:

Gap between GPA and Condition Score | Source: Voice of San Diego

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Why Grade doesn’t tell a complete story

Grades have long been a testament to parents seeking to assess their children’s academic progress. However, when GPA climbs and learning outcomes stagnate, the cutting increases. a Joint reporting by TNTP and learning heroes Despite learning losses during the pandemic era, around 80% of children say they bring most of their children home A and B.

Misleading comfort in inflated grades can limit access to support. If students from underresourced schools have good grades that do not match their actual performance, they may not receive tutors or receive the help they need. A 2023 study in North Carolina found that after more generous grading was introduced, low-performing students were more likely to miss schools, and engagement could decline when standards were relaxed.

The bottom line is that if everyone gets an A, A really makes sense. And does your child actually know the material? And does this prepare them for success in the future?

What happens if no one fails?

Since the early 2000s, policy pushes to “No Child Reftect Behind” have encouraged schools to prioritize progress in grades over content acquisition. Combined with more recent pressures, such as allowing slow work without penalties and assigning a minimum grade of 50% if an allocation is missed, obstacles are becoming rare.

However, removing the threat of failure can also remove motivation for improvement. Economists David Fingrio and Maurice Lucas discovered that students assigned to generous primary school teachers learned less and later worsened. In high school, students who were taught simple algebra grades worsened in later mathematics classes.

The inflated grade also contributes to broader economic concerns. Employers relying on GPAs can overestimate the skills of recent graduates, leading to employment frustration, retraining costs and inconsistencies. If students are not graduating, the workforce is struggling.

Standardized testing regains traction

As grade inflation undermines the usefulness of GPAs, some universities are returning to standardized testing. An Elite Colleges 2024 survey found that SAT and ACT scores were stronger predictors of academic success than GPA. This reversal comes after many schools have moved to test option admissions during the pandemic.

The revival of the test is driven by concerns that when most students receive similarly high grades, it will promote a gradient compression that makes it difficult to distinguish applicants. As there are fewer students who have C, A is said to be less than before. While some education experts have defended performance inflation as a way to build student trust, others worry that it will reward unperforming rewards and reduce incentives.

Policymakers are being asked to set boundaries. ACT CEO Janet Godwin said in 2023 that grade inflation is “systematic” and needs to be addressed beyond the classroom. Dr. Edgar Sanchez, author of the ACT study, warned that GPAS is becoming an unprepared measure of university and workforce.

What families need to know

Families who send their children to college need to understand that Not all A’s reflect the same level of learning. Grades alone no longer clearly provide that you are ready for college-level work. When comparing schools or preparing university applications, families should consider how GPAs compare with standardized test scores and whether students are being challenged in rigorous courses.

Schools can help by using external benchmarks such as end-of-course exams and state and national assessments to provide a more complete perspective on achievement. Parents should ask if the school provides this type of data and request it along with grades.

Policy changes are also important. Several grading reforms, such as removing additional credits or enforcing deadlines, can support higher expectations when used consistently. Others can do more harm than good, such as inflated minimum grades or removing accountability.

Grade inflation has more impact than university admissions. It shapes how students study, how parents support their learning, and how well they prepare for a life beyond school. For families, maintaining information and asking questions about how grades are assigned is one way to ensure that letter grades still reflect something in reality.

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Inflation after grades is real. This means it for the alumni who first appeared in university investors.

Contents
Do you want to save this?Why Grade doesn’t tell a complete storyWhat happens if no one fails?Standardized testing regains tractionWhat families need to knowJudge blocks plans to fire 90% of CFPB staffCan President Trump reverse student loan forgiveness?University Entrance Secrets for Parents

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