Jennifer,
That works fine for some folks (that is, those teaching some courses), but not so well for others. If I were teaching history, for instance, as long as I could tell what the student was saying, spelling might not be that important. For an English class, or a Business class, it might be critical, because the final product (in looks and presentation) is a part of what is being tested. An alternative to not counting off for spelling might be to allow the student to use technology that allows them to clean up their mistakes! Spell checkers in word… >>>