This project explores the ongoing debate between pass/fail (P/F) and multigrade grading systems (e.g., A–F or 3–5 scales) in higher education. We examine the issue from both academic literature and faculty perspectives. A literature review reveals that P/F grading is generally associated with improved student mental health, increased motivation, and comparable academic performance, suggesting it as a beneficial alternative to traditional grading. The primary drawback identified in the literature is that P/F grading may disadvantage students in competitive job or graduate school markets, where employers often prefer detailed grade information. To compare these findings with real-world academic perceptions, we conducted eight structured interviews with professors in LTH. The responses we received revealed a significant divergence from the literature: while some acknowledged the mental health benefits of P/F grading, the overall sentiment leaned towards multi-grade. Interviewees mentioned greater precision in evaluating student achievement and concerns about P/F grading reducing student accountability, motivation and effort. Interviewees also mentioned their reliance on grades to hire teaching assistants or doctoral students.