Currently have a 3.5 and a 169 LSAT. Considering re-taking the LSAT in June, think I can get around a 173-175.

Already got into Michigan but considering withdrawing my application this cycle since I'm not sure I want to go to law school next year anyway.

After graduation I'll be spending a year doing the Fulbright scholarship, so I'll add that to my resume. Considering getting work experience or doing something like TFA after the Fulbright if I decide to postpone law school.

If I ED to Columbia next cycle with a possibly higher LSAT score, will I have a chance of getting in? I was wait listed to Columbia this year and not really expecting to get in.

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I'm also hesitant since I'm worried I somehow got miraculously lucky this year by getting into Michigan and if I withdrew my application and re-applied later, I wouldn't get into the same caliber of schools. My rationale for reapplying is twofold: I do really want to take 1-3 gap years to clear my head and get life experience and doing the Fulbright, etc might help my application. And second is I want to give law school applications another try and see if I can't get into a law school in a bigger city.

Is it possible to defer at Michigan, retake, and if you get a good score, drop out of Michigan and reapply? If you don't get a good score, you can retake again, and if you still don't get a good score, you can just go to Michigan. If that's not allowed, you could turn down Michigan now and reapply next year. It's a risk since your chances might not improve if your score doesn't improve, but you'll have some good softs under your belt, so you'll probably do at least as well next year.

I wouldn't want to defer then withdraw if only because it would look bad on my part, wouldn't it?

You need a 173+ and most likely an ED to have a good chance of getting into Columbia.

will a fulbright and possibly some WE help a lot?

No, you were fortunate to get into Michigan with those numbers. Your concern is legit. I would only defer if you know you can for sure raise your LSAT (which is never a guarantee)

To be fair a Fulbright is a good soft but it is still a soft meaning a tiebreaker. No reason for them to take you over someone with the same GPA and an LSAT above median.

I know I was lucky to get in this cycle but for some reason it doesn't really feel right to go after my one gap year, so I'm hesitating. I feel like I'd rather get WE or do something else for a while. I might regret it later on but... I think I'd regret it more if I signed up to go to Michigan when I wasn't ready.

This is perfectly reasonable. Take the year off, get some life experience. Retake the LSAT, and if you can clear 170 you should have some solid options.

A 171 opens you up to a lot of better options. Even if you don't get Columbia, you'll still be in a better position than clinging onto Michigan at sticker with everything you've got. Put down a seat deposit and eat it if you don't score 170+ in June?

On the other hand, you kind of sound like you don't want to rush into law school. A gap year isn't necessarily the worst option in the world either.

+1. retake and see what happens