We used to joke at all the pre med students as to why they chose Georgia Tech as just about every other school had gpa inflation. And grad schools don't take Tech's lower grades into account.
Effective fall 2017, when calculating the HOPE and Zell Miller Scholarship postsecondary Grade Point Average (GPA), an additional weight of 0.5 will be added to grades of B, C, and D for approved degree level science, technology, engineering, and math (STEM) courses
I think it's good since it doesn't affect their Institute GPA but can help them keep the scholarship. I knew a lot of people who lost HOPE/Zell and the increased financial burden made keeping their grades up that much harder.
Edit: Valdosta doesn't offer graduate CS. But imagine that it did.
I don't think it is uncommon for tests to be written such that with a student a strong command of the material will not score 100%.
That sounds something like an older system. I don't remember it entirely, but IIRC, very early in my school career, an A was 93-100% and an F was anything less than 70%.
My wife went there, and while most STEM grad schools understood that grades at MIT were not inflated, medical schools did not seem to care. One of her friends had to first get inflated grades doing a STEM masters degree before she could get into med school due to her uninflated MIT undergrad grades.
I studied physics. It was possible to game the system to a certain extent. If you took the (subjectively) hardest modules like gauge theory, you could get a high grade even if you only answered half the paper. So if you were smart, but not top of your class, you'd be better off taking the hard subjects because every mark you got was effectively worth more. If you took the easy and popular modules, every mark would count and it might even be normalised down.
The reason I liked it was because I hated having to cram for easy subjects because the class average would be so high. I would rather put the same amount of effort in to learn concepts (and have to remember less in the exam) than rote facts.