The pass-fail grading system is an alternative to traditional letter grading. Under this system, students receive either a "pass" or "fail" mark for a course, rather than a letter grade. The pass-fail system is often used to encourage students to explore subjects outside their major or comfort zone without worrying about the impact on their GPA.

Schiller International University employs the pass-fail grading system in specific courses to promote a more exploratory and risk-free learning environment. This approach allows students to expand their horizons, try new subjects, and focus on learning rather than grades.