Back when I went to University of Rochester in the early 90's, the entire first year was not included in your GPA. So we still got grades, but they didn't count for anything. But in my junior year, the state of NY told the school that they would lose their accreditation if they kept it up, because they saw it as unfairly raising the GPA of UR graduates versus all other NY universities. So while my class was grandfathered in, the practice was stopped the next year for the incoming freshman class.