Many faculty probably already do this,but paperless grading really helps everyone. It's especially good on the instructor's end for managing large classes: 1) students have a "time stamp" for when they turned in work, eliminating fuss of claims that it was turned in on XYZ date 2) students get quicker feedback and grades through the learning management system and 3) there is room for hybrid teaching or assignments, enhancing face-to-face instruction. I love learning management systems for this reason and more. If more faculty went paperless, it would save money for students, as well on printing and paper.
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