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Let's say I apply to a school with an upcoming application and I have a few lsat grades on file that are not very good. I plan on retaking the test in June. Will the school wait until they receive my June lsat grade before making a final decision or will they make a decision based on the lsat grades they already have? how exactly does this work???

They'll make a decision based up til your Feb. scores. June scores are only considered for very very late waitlists.