The purpose of this survey of the grading policies of the AACRAO member institutions was to determine: (1) the nature and extent of changes from the traditional grading system; (2) practices in accepting transfer students and credits from institutions with nontraditional grading systems; (3) the rate and recency of change in grading systems; and (4) the anticipated nature of grading systems in the near future. The responses to each item in the survey were analyzed by institutional size, control, and type, as well as by regional accreditation areas. Replies were received from 1,301 or 77 percent of the member institutions. The major findings were: (1) about one half the institutions used traditional grading systems; 46 percent indicated that they were using grading systems that combined traditional and nontraditional policies; and 2 percent stated they were using nontraditional systems exclusively; (2) 61 percent of the responding institutions indicated use of the pass-fail, or credit/no-credit grading policy; (3) 31 percent of the institutions accepted credit without question when some, but not all of the grades on the transcript are nontraditional; (4) the rate of major changes in the grading system seemed to be accelerating; and (5) 41 percent predicted that their grading system would become less traditional. (AF)