It comes in a package. When you are applying for the grad school, scholarships or jobs -grades DOES matter. However, grades are not the ONLY thing that is looked at. Having good grades is important, very important. There are some very successful people who did not get good grades or did not even graduate and they make the headlines however these are exceptions and should not be taken as role models for dropping out of school or for not paying attention to grades. If you look at the online salary surveys graduates make more than non-graduates. The higher the education the salary is better. There are exceptions on this as well I know a Nepali PHD professor who used to make little more than minimum wage for a long time, now he teaches at high school. To sum it up - grades and degrees does matter, but that is not the only thing that matters. -Shiv