Late Submissions is a feature in Advanced Grading Settings on both In-Class and Homework style assignments. Turn it on to allow students to submit these assignments late, with the option to have a percentage penalty off of their score.
Once you have your assignment ready to save, use the left side setting panel to select the Pedagogy & Grading section then select Advanced under the heading Grading.
After setting any other Advanced settings, scroll down to Late Submissions and select Allow.
This will reveal options for penalties when students submit late work. Set the percentage penalty you would like for a late attempt. 100% will mean no points will be given for a late submission, 0% means no penalty. You can select any value between 0 and 100.
You can change the type of grading penalty you wish to put on the assignment under the Gradual Penalty heading. The Constant option immediately implements the penalty percentage number if a student submits an assignment late, while Gradual increases the penalty percentage based on the time frame you choose.
For example, if you implement a 10% penalty on late assignments, having a constant penalty will immediately implement a 10% penalty on all late submissions, no matter how late they are. A 10% gradual penalty with "per day" selected with increase the penalty 10% for each day that an assignment is late, 10% on the first day after it is due, 20% on the second, 30% on the third, and so on.
You will also need to choose the date you want to stop allowing late entries using the Allow Until area. This will typically default to 2 weeks after the standard due date of the assignment. Click on the text representing the allow until date to bring up a date picker.
There will be two options: Relative Date and Exact Date. When using a Relative Date, you can pick between Hours, Days and Weeks and some reasonable number options for each selection. If you select a relative date, the exact time and date will show up below the selected option back in the Allow Until area.
If the the Relative Date does not include the option you want, or if you want to choose a specific time and/or date, select the Exact Date tab in the date picker. This will bring up a calendar on top. Use the left and right arrows next to the month to select the correct month, pick a date, and then use the up and down arrows over the Hour, Minute and AM/PM selection to change the exact time.
NOTE: When using the gradual penalty, it is possible to allow students to submit answers for an assignment and not get any points for it. For example, if you set up an assignment with a gradual late penalty of 20% per day, if a student submits the assignment 6 days after the initial due date, they will not receive any points for that assignment but will still be allowed to submit. To avoid this, you can set up your "Allow Until" date to be 5 days after the initial due date, if desired.
You are all set now! Hit Publish Changes if the assignment was previously live without late submissions, Publish if it's new and you want it live now, or Save Draft to keep it on hand for the future as when setting up any other assignment.
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