Decreasing Number Of Records.. Is It Important?

hi,

If we consider the following scenerio:
a school with 500 students.
On average student takes [x] courses per year, and [y] tests per course.

table of grades:
+------------+-----------+---------+-------+
| student_id | course_id | term_id | grade |
+------------+-----------+---------+-------+
| | | | |
+------------+-----------+---------+-------+
| | | | |
+------------+-----------+---------+-------+

as average, x = 20, y =6 then
number of records = 500 * 20 * 6 = 120,000 record per year.

is this design correct considering number of records generated per year?
Is it important to reduce the "number of records" or no?

thank you.