re: Why do schools have Pass / Fail grades

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You really should do whatever it takes, apply to every open position in the US, to get a government job. I don't think the private sector is for you.

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I really do not understand what people have against government jobs. I checked the salaries for them and overall if you have more in demand skills, you can make just as much as you would in private sector.

Private sector actually has more low-paying jobs if you think about it. How many companies hire full or part timers for less than 30K and NO Benefits ( a WHOLE LOT).

I don't have anything against them, they pay well. I'm telling you that you should focus 100% on employment there. Even if you have to start down the GS scale or move far away, it'll be worth it in the long run.

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ETA: I do not know if it is the norm for grad school project/thesis to get grades or not. If this pail/fail business is normal, I apologize since I did not know.

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I have over 150 hours of Pass for PhD dissertation from Georgia Tech. If you weren't doing graded assignments why would you receive a letter grade?

There's some striking scientific evidence that grades/more money aren't the best motivator beyond menial tasks. Direct motivators seem to be tied to things that advance a "higher purpose". So long story short, in situations like graduate school - pass/fail is almost certainly the best mechanism, as your concentration should rest on learning your specialization, not a GPA that is usually used to advance towards one. Undergraduate consists of menial bullshite that you dredge through, so GPA + grad school/job prospects is a great motivator. Once you reach graduate school, if learning a specific concentration in something you should be passionate about isn't enough, you shouldn't be there nor receive your degree. Graduate school is specialization.