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Paraphrasing also helps the instructor know the student has understood what he or she has read, instead of the student just doing a direct citation which might leave open the possibility that the student is quoting without understanding. Heidegger scholars are notorious for citing Heidegger’s words without giving their interpretation of what Heidegger means.
For the same reason I distrust direct quotations in original languages that do not explain what the interpreter thinks the citation means in English. Many translations are interpretations.