I have a big problem with K-12 school districts that have demerit
systems where accumulation of demerits (demerits may come from
tardiness or other bad behaviors) affects the academic grade of a
student.  No university or college that I know has such a system. 
Sure, if you behave badly enough you may be (and should be)
kicked-out, but your academic grade is not reduced.

I seem to recall that Harvard historically had demerits that affected
student grades (for things like sleeping on a bench, walking on the
lawn, etc.), but recognized that this was not wise and changed their
system.  This then led the way for other universities to do the same. 
What I want for a 5 star grade but with no tip is:

* A reference to the history of grading at Harvard where their
abolition of demerits is described

For five stars and a tip I want the above and

* References to academic (education) literature that describes the
tying of behavioral demerits and academic grades as a bad thing

I look forward to an answer (but if you walk across the lawn your
grade goes down ;-)).

Yes, apparently there once was a demerit system at Harvard, in Thoreau's day:
http://www.hinduismtoday.com/archives/1992/02/1992-02-05.shtml

This site may also be of interest, but I believe the expressions
"merits and demerits" at the top of page 3 does not refer to what you
are asking about.
Does the article have enough depth to assume that a demerit system
would have been mentioned?  Maybe the books in the bibliography could
help.
http://www.indiana.edu/~educy520/sec6342/week_07/durm93.pdf

I would speculate that such a system went out after the Civil War or
in President Eliot's day, who was reformer.  It certainly did not
exist 50 years ago.

Dear myoarin, your comment is helpful.  The books in the bibliography
of the Indiana history (which I did know about) may be useful... our
library has the history of grading at Harvard book.  The issue that I
want to fight is the connection of behavior to academic grades. 
Specifically, that tardiness should result in a decreased grade.

The Wikipedia entry on Eliot is very informative.  Today university
presidents serve for only very short tenures.  Summers is a an
example... the history books may yet judge him well, however.

Thanks again!