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I noticed some students wait until their October LSAT scores are available to apply? I understood that the LSAC would update the report sent to Law Schools upon receipt of new test scores or transcripts. Will the reports be updated to each school I applied to before the October scores are available?

Yes.

If you submit your applications prior to the release of the October scores, LSAC will send the updated LSAT score.

Honestly, many schools will not even look at application until the very end of October or November. All of the admissions officials I talked to dreaded the process because its an almost perpetual loop. The longer they can stave it off, the longer they can keep their sanity.

And your LSAT score may change the range of schools to which you're applying. Why waste money on ridiculous reaches or too-low safeties?