Automatic grading and feedback have been long studied using traditional machine learning and deep learning techniques using language models. With the recent accessibility to high performing large language models (LLMs) like LLaMA-2, there is an opportunity to investigate the use of these LLMs for automatic grading and feedback generation. Despite the increase in performance, LLMs require significant computational resources for fine-tuning and additional specific adjustments to enhance their performance for such tasks. To address these issues, Parameter Efficient Fine-tuning (PEFT) methods, such as LoRA and QLoRA, have been adopted to decrease memory and computational requirements in model fine-tuning. This paper explores the efficacy of PEFT-based quantized models, employing classification or regression head, to fine-tune LLMs for automatically assigning continuous numerical grades to short answers and essays, as well as generating corresponding feedback. We conducted experiments on both proprietary and open-source datasets for our tasks. The results show that prediction of grade scores via finetuned LLMs are highly accurate, achieving less than 3% error in grade percentage on average. For providing graded feedback fine-tuned 4-bit quantized LLaMA-2 13B models outperform competitive base models and achieve high similarity with subject matter expert feedback in terms of high BLEU and ROUGE scores and qualitatively in terms of feedback. The findings from this study provide important insights into the impacts of the emerging capabilities of using quantization approaches to fine-tune LLMs for various downstream tasks, such as automatic short answer scoring and feedback generation at comparatively lower costs and latency.