Years ago it used to be the case that Unix passwords were limited to 8 characters, or that if you made the password longer than 8 characters the extra wouldn\'t make any differe
You will find this article of interest. There is something called PAM (Password Authentication Module) which runs your password through a series of modules (configured in /etc/pam.d/passwd or /etc/pam.conf) to determine whether the password is valid or not.