Grade inflation is harmful to students as well as faculty. Faculty should not have to fear that honest grading may result in job loss. Students who truly deserve A grades also are negatively impacted when they receive the same grade as students who submit good but not superior work. At the very least, it is a disincentive for students to work to the best of their ability. Students who receive higher grades than they deserve may develop a false sense of their mastery of a subject and may become accustomed to getting the grade they want rather than the grade they deserve. The consequences of grade inflation are not limited to faculty and students but extend to employers. Those that evaluate prospective employees' transcripts as a part of the screening process are apt to find their new hires less qualified than their academic records suggest. If grades are to accurately reflect the level of knowledge and skill a student has mastered, then it is imperative that students be assigned the grades they earn rather than the grades they want. This study provides information on the possible existence of and reasons for grade inflation as perceived by students and faculty at a teacher education program at a liberal arts college. Results indicated grade inflation existed, which was consistent with previous research reviewed. Faculty perceived its existence, while students did not. (Contains 2 figures and 2 tables.)