Kansas State University faculty members and students were asked about factors affecting "grade inflation" as well as consequences of changing academic polices relating to it. Responses were received from 188 faculty members and 369 students. Most faculty members viewed grade inflation negatively, and felt that it was caused by a combination of factors including lenient policies (regarding course withdrawal, course re-takes, and credit/no credit options); faculty intimidation resulting from student ratings of teachers or from pressures to retain high enrollments; faculty role conflicts; and innovation approaches to education. Students were more apt to view grade inflation positively, probably reflecting their belief that several current academic policies serve student interests. These policies have been used by students to improve their academic records and to explore new academic interests. It is concluded that grade inflation can be partially controlled by academic policies. However, policy-makers need to judge whether the total effect of a given policy (including its unintended side effects) serve to improve or reduce the quality of education provided by the institution. Faculty and student questionnaires are appended. (Author/LBH)