Texas is very proud of their GPA

Spot on! I've read somewhere GT was unique wrt this policy, as it was, and is, in many regards. Seems like double jeopardy to not drop the failed grade after re-taking and passing the course .

In the old days if you got a 'F' in a class and then retook it and got a 'C'; your transcript and your GPA showed both the 'F' and the 'C'. Now days I think they just show the 'C'.

Auburn has a similar policy:
  • AU has a grade adjustment policy (GAP) that allows students to forgive three grades of D or F from their GPA calculation. If the course is required in the major or core then the course must be retaken at Auburn. This forgiveness policy can be used only three
    times in the entire time at Auburn. All AU course grades appear on the official transcript, including those grade adjusted. GAPPED grades do not count towards scholarships or entrance into professional schools.
http://academicsupport.auburn.edu/academic-support-home/parents/parents-guide-to-academic-support/
 
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