diff --git a/mod/assign/backup/moodle2/backup_assign_stepslib.php b/mod/assign/backup/moodle2/backup_assign_stepslib.php
index 0373e33a0f2..3d07191f318 100644
--- a/mod/assign/backup/moodle2/backup_assign_stepslib.php
+++ b/mod/assign/backup/moodle2/backup_assign_stepslib.php
@@ -51,6 +51,7 @@ class backup_assign_activity_structure_step extends backup_activity_structure_st
                                                   'submissiondrafts',
                                                   'sendnotifications',
                                                   'sendlatenotifications',
+                                                  'sendstudentnotifications',
                                                   'duedate',
                                                   'cutoffdate',
                                                   'allowsubmissionsfromdate',
diff --git a/mod/assign/db/install.xml b/mod/assign/db/install.xml
index 4cd7e49ef24..7befb9c1cd2 100644
--- a/mod/assign/db/install.xml
+++ b/mod/assign/db/install.xml
@@ -1,5 +1,5 @@
 <?xml version="1.0" encoding="UTF-8" ?>
-<XMLDB PATH="mod/assign/db" VERSION="20130314" COMMENT="XMLDB file for Moodle mod/assign"
+<XMLDB PATH="mod/assign/db" VERSION="20131220" COMMENT="XMLDB file for Moodle mod/assign"
     xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
     xsi:noNamespaceSchemaLocation="../../../lib/xmldb/xmldb.xsd"
 >
@@ -32,6 +32,7 @@
         <FIELD NAME="maxattempts" TYPE="int" LENGTH="6" NOTNULL="true" DEFAULT="-1" SEQUENCE="false" COMMENT="What is the maximum number of student attempts allowed for this assignment? -1 means unlimited."/>
         <FIELD NAME="markingworkflow" TYPE="int" LENGTH="2" NOTNULL="true" DEFAULT="0" SEQUENCE="false" COMMENT="If enabled, marking workflow features will be used in this assignment."/>
         <FIELD NAME="markingallocation" TYPE="int" LENGTH="2" NOTNULL="true" DEFAULT="0" SEQUENCE="false" COMMENT="If enabled, marking allocation features will be used in this assignment"/>
+        <FIELD NAME="sendstudentnotifications" TYPE="int" LENGTH="2" NOTNULL="true" DEFAULT="1" SEQUENCE="false" COMMENT="Default for send student notifications checkbox when grading."/>
       </FIELDS>
       <KEYS>
         <KEY NAME="primary" TYPE="primary" FIELDS="id" COMMENT="The unique id for this assignment instance."/>
@@ -135,4 +136,4 @@
       </INDEXES>
     </TABLE>
   </TABLES>
-</XMLDB>
+</XMLDB>
\ No newline at end of file
diff --git a/mod/assign/db/upgrade.php b/mod/assign/db/upgrade.php
index b8e3eac2015..53142f00436 100644
--- a/mod/assign/db/upgrade.php
+++ b/mod/assign/db/upgrade.php
@@ -462,5 +462,27 @@ function xmldb_assign_upgrade($oldversion) {
     // Moodle v2.6.0 release upgrade line.
     // Put any upgrade step following this.
 
+    if ($oldversion < 2014010801) {
+
+        // Define field sendstudentnotifications to be added to assign.
+        $table = new xmldb_table('assign');
+        $field = new xmldb_field('sendstudentnotifications',
+                                 XMLDB_TYPE_INTEGER,
+                                 '2',
+                                 null,
+                                 XMLDB_NOTNULL,
+                                 null,
+                                 '1',
+                                 'markingallocation');
+
+        // Conditionally launch add field sendstudentnotifications.
+        if (!$dbman->field_exists($table, $field)) {
+            $dbman->add_field($table, $field);
+        }
+
+        // Assign savepoint reached.
+        upgrade_mod_savepoint(true, 2014010801, 'assign');
+    }
+
     return true;
 }
diff --git a/mod/assign/externallib.php b/mod/assign/externallib.php
index cf582ce86d8..fd28223c4cc 100644
--- a/mod/assign/externallib.php
+++ b/mod/assign/externallib.php
@@ -312,11 +312,29 @@ class mod_assign_external extends external_api {
                 unset($courses[$id]);
             }
         }
-        $extrafields='m.id as assignmentid, m.course, m.nosubmissions, m.submissiondrafts, m.sendnotifications, '.
-                     'm.sendlatenotifications, m.duedate, m.allowsubmissionsfromdate, m.grade, m.timemodified, '.
-                     'm.completionsubmit, m.cutoffdate, m.teamsubmission, m.requireallteammemberssubmit, '.
-                     'm.teamsubmissiongroupingid, m.blindmarking, m.revealidentities, m.attemptreopenmethod, '.
-                     'm.maxattempts, m.markingworkflow, m.markingallocation, m.requiresubmissionstatement';
+        $extrafields='m.id as assignmentid, ' .
+                     'm.course, ' .
+                     'm.nosubmissions, ' .
+                     'm.submissiondrafts, ' .
+                     'm.sendnotifications, '.
+                     'm.sendlatenotifications, ' .
+                     'm.sendstudentnotifications, ' .
+                     'm.duedate, ' .
+                     'm.allowsubmissionsfromdate, '.
+                     'm.grade, ' .
+                     'm.timemodified, '.
+                     'm.completionsubmit, ' .
+                     'm.cutoffdate, ' .
+                     'm.teamsubmission, ' .
+                     'm.requireallteammemberssubmit, '.
+                     'm.teamsubmissiongroupingid, ' .
+                     'm.blindmarking, ' .
+                     'm.revealidentities, ' .
+                     'm.attemptreopenmethod, '.
+                     'm.maxattempts, ' .
+                     'm.markingworkflow, ' .
+                     'm.markingallocation, ' .
+                     'm.requiresubmissionstatement';
         $coursearray = array();
         foreach ($courses as $id => $course) {
             $assignmentarray = array();
@@ -359,6 +377,7 @@ class mod_assign_external extends external_api {
                         'submissiondrafts' => $module->submissiondrafts,
                         'sendnotifications' => $module->sendnotifications,
                         'sendlatenotifications' => $module->sendlatenotifications,
+                        'sendstudentnotifications' => $module->sendstudentnotifications,
                         'duedate' => $module->duedate,
                         'allowsubmissionsfromdate' => $module->allowsubmissionsfromdate,
                         'grade' => $module->grade,
@@ -412,6 +431,7 @@ class mod_assign_external extends external_api {
                 'submissiondrafts' => new external_value(PARAM_INT, 'submissions drafts'),
                 'sendnotifications' => new external_value(PARAM_INT, 'send notifications'),
                 'sendlatenotifications' => new external_value(PARAM_INT, 'send notifications'),
+                'sendstudentnotifications' => new external_value(PARAM_INT, 'send student notifications (default)'),
                 'duedate' => new external_value(PARAM_INT, 'assignment due date'),
                 'allowsubmissionsfromdate' => new external_value(PARAM_INT, 'allow submissions from date'),
                 'grade' => new external_value(PARAM_INT, 'grade type'),
diff --git a/mod/assign/lang/en/assign.php b/mod/assign/lang/en/assign.php
index 345f9d3073b..c875b3db77a 100644
--- a/mod/assign/lang/en/assign.php
+++ b/mod/assign/lang/en/assign.php
@@ -312,6 +312,8 @@ $string['savegradingresult'] = 'Grade';
 $string['saveallquickgradingchanges'] = 'Save all quick grading changes';
 $string['savenext'] = 'Save and show next';
 $string['scale'] = 'Scale';
+$string['sendstudentnotificationsdefault'] = 'Default setting for "Notify students"';
+$string['sendstudentnotificationsdefault_help'] = 'Set the default value for the "Notify students" checkbox on the grading form.';
 $string['sendstudentnotifications'] = 'Notify students';
 $string['sendstudentnotifications_help'] = 'If enabled, students receive a message about the updated grade or feedback.';
 $string['sendnotifications'] = 'Notify graders about submissions';
diff --git a/mod/assign/locallib.php b/mod/assign/locallib.php
index 9b33b669787..3b97b7bfbe1 100644
--- a/mod/assign/locallib.php
+++ b/mod/assign/locallib.php
@@ -538,6 +538,7 @@ class assign {
      */
     public function add_instance(stdClass $formdata, $callplugins) {
         global $DB;
+        $adminconfig = $this->get_admin_config();
 
         $err = '';
 
@@ -555,6 +556,10 @@ class assign {
         $update->requiresubmissionstatement = $formdata->requiresubmissionstatement;
         $update->sendnotifications = $formdata->sendnotifications;
         $update->sendlatenotifications = $formdata->sendlatenotifications;
+        $update->sendstudentnotifications = $adminconfig->sendstudentnotifications;
+        if (isset($formdata->sendstudentnotifications)) {
+            $update->sendstudentnotifications = $formdata->sendstudentnotifications;
+        }
         $update->duedate = $formdata->duedate;
         $update->cutoffdate = $formdata->cutoffdate;
         $update->allowsubmissionsfromdate = $formdata->allowsubmissionsfromdate;
@@ -878,6 +883,7 @@ class assign {
      */
     public function update_instance($formdata) {
         global $DB;
+        $adminconfig = $this->get_admin_config();
 
         $update = new stdClass();
         $update->id = $formdata->instance;
@@ -891,6 +897,10 @@ class assign {
         $update->requiresubmissionstatement = $formdata->requiresubmissionstatement;
         $update->sendnotifications = $formdata->sendnotifications;
         $update->sendlatenotifications = $formdata->sendlatenotifications;
+        $update->sendstudentnotifications = $adminconfig->sendstudentnotifications;
+        if (isset($formdata->sendstudentnotifications)) {
+            $update->sendstudentnotifications = $formdata->sendstudentnotifications;
+        }
         $update->duedate = $formdata->duedate;
         $update->cutoffdate = $formdata->cutoffdate;
         $update->allowsubmissionsfromdate = $formdata->allowsubmissionsfromdate;
@@ -3107,7 +3117,9 @@ class assign {
         if ($showquickgrading && $quickgrading) {
             $gradingtable = new assign_grading_table($this, $perpage, $filter, 0, true);
             $table = $this->get_renderer()->render($gradingtable);
-            $quickformparams = array('cm'=>$this->get_course_module()->id, 'gradingtable'=>$table);
+            $quickformparams = array('cm'=>$this->get_course_module()->id,
+                                     'gradingtable'=>$table,
+                                     'sendstudentnotifications'=>$this->get_instance()->sendstudentnotifications);
             $quickgradingform = new mod_assign_quick_grading_form(null, $quickformparams);
 
             $o .= $this->get_renderer()->render(new assign_form('quickgradingform', $quickgradingform));
@@ -5724,7 +5736,7 @@ class assign {
             }
         }
         $mform->addElement('selectyesno', 'sendstudentnotifications', get_string('sendstudentnotifications', 'assign'));
-        $mform->setDefault('sendstudentnotifications', 1);
+        $mform->setDefault('sendstudentnotifications', $this->get_instance()->sendstudentnotifications);
 
         $mform->addElement('hidden', 'action', 'submitgrade');
         $mform->setType('action', PARAM_ALPHA);
diff --git a/mod/assign/mod_form.php b/mod/assign/mod_form.php
index 1cd183ca0a0..eead2ae799c 100644
--- a/mod/assign/mod_form.php
+++ b/mod/assign/mod_form.php
@@ -159,6 +159,10 @@ class mod_assign_mod_form extends moodleform_mod {
         $mform->addHelpButton('sendlatenotifications', 'sendlatenotifications', 'assign');
         $mform->disabledIf('sendlatenotifications', 'sendnotifications', 'eq', 1);
 
+        $name = get_string('sendstudentnotificationsdefault', 'assign');
+        $mform->addElement('selectyesno', 'sendstudentnotifications', $name);
+        $mform->addHelpButton('sendstudentnotifications', 'sendstudentnotificationsdefault', 'assign');
+
         // Plagiarism enabling form.
         if (!empty($CFG->enableplagiarism)) {
             require_once($CFG->libdir . '/plagiarismlib.php');
diff --git a/mod/assign/quickgradingform.php b/mod/assign/quickgradingform.php
index 85d0985eb17..bff0294d6f2 100644
--- a/mod/assign/quickgradingform.php
+++ b/mod/assign/quickgradingform.php
@@ -54,7 +54,7 @@ class mod_assign_quick_grading_form extends moodleform {
 
         // Skip notifications option.
         $mform->addElement('selectyesno', 'sendstudentnotifications', get_string('sendstudentnotifications', 'assign'));
-        $mform->setDefault('sendstudentnotifications', 1);
+        $mform->setDefault('sendstudentnotifications', $instance['sendstudentnotifications']);
 
         // Buttons.
         $savemessage = get_string('saveallquickgradingchanges', 'assign');
diff --git a/mod/assign/settings.php b/mod/assign/settings.php
index 04575f40bec..c92378867a1 100644
--- a/mod/assign/settings.php
+++ b/mod/assign/settings.php
@@ -213,6 +213,16 @@ if ($ADMIN->fulltree) {
     $setting->set_locked_flag_options(admin_setting_flag::ENABLED, false);
     $settings->add($setting);
 
+    $name = new lang_string('sendstudentnotificationsdefault', 'mod_assign');
+    $description = new lang_string('sendstudentnotificationsdefault_help', 'mod_assign');
+    $setting = new admin_setting_configcheckbox('assign/sendstudentnotifications',
+                                                    $name,
+                                                    $description,
+                                                    1);
+    $setting->set_advanced_flag_options(admin_setting_flag::ENABLED, false);
+    $setting->set_locked_flag_options(admin_setting_flag::ENABLED, false);
+    $settings->add($setting);
+
     $name = new lang_string('blindmarking', 'mod_assign');
     $description = new lang_string('blindmarking_help', 'mod_assign');
     $setting = new admin_setting_configcheckbox('assign/blindmarking',
diff --git a/mod/assign/tests/generator/lib.php b/mod/assign/tests/generator/lib.php
index 2e8896659fd..07600d8d058 100644
--- a/mod/assign/tests/generator/lib.php
+++ b/mod/assign/tests/generator/lib.php
@@ -34,6 +34,7 @@ class mod_assign_generator extends testing_module_generator {
             'submissiondrafts'                  => 1,
             'requiresubmissionstatement'        => 0,
             'sendnotifications'                 => 0,
+            'sendstudentnotifications'          => 1,
             'sendlatenotifications'             => 0,
             'duedate'                           => 0,
             'allowsubmissionsfromdate'          => 0,
diff --git a/mod/assign/tests/locallib_test.php b/mod/assign/tests/locallib_test.php
index 3926f408cc4..a1ca542b740 100644
--- a/mod/assign/tests/locallib_test.php
+++ b/mod/assign/tests/locallib_test.php
@@ -527,7 +527,7 @@ class mod_assign_locallib_testcase extends mod_assign_base_testcase {
 
         // Now create an assignment and add some feedback.
         $this->setUser($this->editingteachers[0]);
-        $assign = $this->create_instance();
+        $assign = $this->create_instance(array('sendstudentnotifications'=>1));
 
         // Simulate adding a grade.
         $this->setUser($this->teachers[0]);
diff --git a/mod/assign/upgrade.txt b/mod/assign/upgrade.txt
index 601d8b56c82..ec94096b175 100644
--- a/mod/assign/upgrade.txt
+++ b/mod/assign/upgrade.txt
@@ -1,4 +1,7 @@
 This files describes API changes in the assign code.
+=== 2.7 ===
+* Added setting sendstudentnotifications to assign DB table with admin defaults. This sets the default value for the
+  "Notify students" option on the grading forms. This setting can be retrieved via webservices.
 
 === 2.6.1 ===
 
diff --git a/mod/assign/version.php b/mod/assign/version.php
index 60a2aa61141..a2e1f9a730a 100644
--- a/mod/assign/version.php
+++ b/mod/assign/version.php
@@ -25,7 +25,7 @@
 defined('MOODLE_INTERNAL') || die();
 
 $module->component = 'mod_assign'; // Full name of the plugin (used for diagnostics).
-$module->version  = 2014010700;    // The current module version (Date: YYYYMMDDXX).
+$module->version  = 2014010801;    // The current module version (Date: YYYYMMDDXX).
 $module->requires = 2013110500;    // Requires this Moodle version.
 $module->cron     = 60;