The University of Michigan College of Literature, Science, and the Arts is shifting to pass/no pass (P/NC) grading for first-year students. The change targets how students experience early coursework, with the policy altering the consequences of grades for that first academic year. The article frames the development as a significant academic policy shift for incoming students, affecting course selection behavior and student risk-taking in foundational classes. It also has implications for advising and how instructors design grading criteria when letter grades are no longer the primary outcome for first-year credit. For institutions, first-year grading reform can influence retention and academic culture, but it also requires careful implementation—clear communication to students, updated policies for academic standing and scholarships, and faculty alignment on evaluation practices.