While granting college credit by examination seems to be on the increase in popularity, few educational researchers seem to be assessing the effect of proficiency credit on student educational variables. For this purpose, the transcripts of 349 students who had graduated from the University of Illinois (Urbana-Champaign campus) during the academic year 1970-71 were examined. Among the more important findings were that students who gain proficiency credit tend to graduate with more total credit hours and more credit hours in upper division courses. Both of these results were interpreted as a positive benefit of proficiency testing. Students with proficiency credit also tended to graduate sooner and with higher grade point averages (GPA) than those with no proficiency credit. However, the relationship between proficiency credit and GPA was stronger within 100-level courses than within 200- and 300-level courses. (Author)