This has a long-requested feature since the statuses were introduced in the "new" gradebook and I'm very glad to see this finally in place. Design-wise I don't think the functionality of the pencil icon is very intuitive to the teacher here. It would be nice to see this feature mirror the statuses in the grade detail tray where teachers click the radio button to change a status, and would be a single click instead of the two that are here. When you're grading a hundred students, that makes a difference. But, I realizes there a limited amount of space in that panel, and overall I'm just really excited that this feature is in the place where teachers are doing a significant amount of grading.