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I have actually thought about this, i think it all dumbs down to reputation. What colleges use grades for or so they tell you is so you can stay in school, and if you fail, you get kicked out because they don't want any dumb kids right? Also, in high school, the reason why they have grades is so you get into college and into high school. But think about this, if you're in college and you have a school full of kids with low grades, no one wants to go there right? But if you are in a school with smart people like Harvard, everyone wants to go there and Harvard knows this. They have found a way to play the system by making it so exclusive that people strive to go there and they only accept smart people. Meanwhile there are other schools like Phoenix University who take just about everyone, and who wants to attend a school where everyone is accepted. I sure don't.