The pandemic has been an unprecedented disruption to the lives of college students and the operation of higher education institutions. Students' performance during the pandemic was likely influenced by the hardship they personally experienced, how easily they adapted to remote teaching (including technology access), and their professors' ability to support students. Generally, college students who can better adjust to stressors are those with higher perceived levels of social support, a greater connection with campus, and lower levels of psychological distress (Pidgeon et al., 2014), and these factors vary along race and class lines (Turner & Avinson, 2003). Faculty could provide support and flexibility to struggling students, but they had to identify which students needed help. Students' backgrounds likely shaped the frequency and content of their interactions with faculty, as lower-income and first-generation students are less likely to reach out to professors (Barry, et al., 2009; Jack, 2016; Kim & Sax, 2009). To alleviate student stress, many colleges implemented COVID-specific grading policies to allow students increased flexibility in choosing to take courses pass/fail rather than for a letter grade (Cheng, 2020). COVID adjustments also often extended the window during which students could withdraw from a course and were generous in allowing students additional time to convert incompletes into grades. It is not surprising that universities relied on changes to grading policies to reduce the potential negative effects of the pandemic on students' academic performance since these policies are a common recourse for individuals facing difficulties in any given semester. Despite their ubiquity, we know little about student use of various aspects of grading policies or how student uptake of grade flexibility is associated with future success. The pandemic provides a unique opportunity to study grading policies and how students use them. Given the ongoing uncertainty of COVID-19 and the likelihood of future disruptions (illnesses, natural disasters, pandemics, etc.), universities need to have sound policies for grading accommodations that they can implement in the event of crises. Thus, it is important to understand whether and how accommodations like flexible grading policies differentially influence students from varying backgrounds, particularly since the pandemic's hardships have fallen disproportionately on non-white, low-income individuals (Garg, et al., 2020; Karpman et al., 2020). The context of this paper is the University of North Carolina (UNC) System's 16 diverse 4-year public institutions, which enrolled approximately 240,000 undergraduate students in Spring 2020. We answer the following research questions: 1. What were the pandemic-induced changes to university grading policies? How did they compare to pre-pandemic policies? Do they vary across institutions? 2. Did student course performance, take up of pass/fail options, and use of withdrawals in Spring 2020 differ from prior spring semesters? Was there variation by student characteristics? 3. Were faculty more lenient in Spring 2020 relative to past spring semesters? Did deviations from prior grading patterns vary by major/program or university? 4. Did student changes in course performance, reliance on pass/fail, or use of withdrawals in Spring 2020 predict postsecondary enrollment in subsequent semesters? We start by analyzing historical documents and policies available from the UNC System's institutions. Across 16 institutions' policies, we contrast differences and similarities in how universities adjusted how students could use pass/fail options and withdrawals. We then rely on UNC System administrative data to conduct the remaining analyses. The main dataset of interest is student transcripts showing UNC System course enrollment and course outcome (i.e., grade, pass/fail, withdrawal). We are specifically interested in students' course outcomes: letter grade, taking a class pass fail, or withdrawals, as well as university enrollment. We explore heterogeneity in outcomes by student demographic information (gender, race/ethnicity, and home zip code), socio-economic status from financial aid data, and high school test scores and GPA. To investigate differences in course outcomes, we compare the distributions of student grades, pass/fail uptake, and withdrawals in Spring 2018/2019 to the Spring 2020 semester. We also model the association between Spring 2020 and course outcomes with OLS and fixed effects regression approaches that account for student characteristics (or student fixed effects), prior academic performance, and major. Finally, we estimate these models for different groups of students (e.g., Pell eligibility, prior academic performance, race/ethnicity) to explore heterogeneity in course performance and reliance on COVID grading policies. To understand whether faculty members adjusted their grading, we estimate faculty fixed effects regression models. Here, the outcome is the average grade faculty members assign, and we look at how grades in Spring 2020 deviate from grades awarded in Spring 2018/2019. We also explore how variation in faculty grading differs across majors/programs and institutions. Finally, we show how Spring 2020 course outcomes are correlated with re-enrollment in a UNC System university in the following fall. This analysis allows us to see if course grades or the reliance of pass/fail options or withdraws could be used by universities as an early indicator that a student is disengaging from their post-secondary education. Our preliminary results (see supplemental tables) indicate a rise in the distribution of grades in Spring 2020 (regardless of student background or course department). Overall, 47 percent of grades given in Spring 2020 were A's (compared to 44 percent in Spring 2018/2019), and the share of course failures also declined (2.1 percent of courses ended in a failure in Spring 2020 versus 4.3 percent the prior two springs). However, students were about 22 percentage points more likely to take a course pass/fail in Spring 2020. These preliminary findings suggest that students were taking advantage of changes to university grading policies in Spring 2020, and that faculty were generally more lenient in their grading when students did take a course for a grade. Lastly, pass/fail uptake in Spring 2020 was associated with higher likelihood Fall 2020 re-enrollment for all students.