Schools such as Caltech and MIT have rigorous curricula that proverbially requires constant study every day of the week just to stay in the middle of the pack. Naturally, most students cut back on sleep. Proponents of this approach are aware of this, even boast about it, saying that this is the best way to learn the material. On the other hand, numerous studies -- including the link at the top of this page -- conclud…
No, those schools have cultures that promote such behavior. I was a grad student and TA at Caltech and observed that the undergrads had horrible time management skills. Procrastination and heroic effort at the last minute were the norm. (I'm not specifically picking on Caltech undergrads, BTW. I'm fairly sure this is typical at most schools.)
This may be true, but there are also plenty of students who work from the moment they wake up until the moment they go to bed and still don't have enough time to get all of their assignments done. The problem is that functionally there isn't really any difference between having a 3.5 GPA and a 2.0 GPA, so at some point most people figure out that what they're being asked to do is impossible so they might as well just do their own thing.