Responses from 760 directors of residency training showed that almost three-fourths of them do not give preference to students from graded schools when selecting residents and that over three-fourths of the directors rated the performance of pass-fail students equal to that of graded students. However, when their responses were analyzed in relation to the characteristics of their programs, it became apparent that there was a greater likelihood of giving preference and higher ratings of performance to graded students if the programs were in medicine, surgery, or obstetrics/gynecology; if they filled all of their positions in the match; and if they were located in the West or South. In addition, there were differences between specialties in regard to how they valued various types of information in the selection of residents in the absence of grades as well as general dissatisfaction with the accuracy and quantity of nongraded information submitted to them.