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Piter
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I want extra points for hitting 400 on the dot.
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mNeo
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The general consensus is that 10% over the limit should be okay because the word limits are usually just "recommendations" .. not some hard limits.

However, I do not agree with the "nobody is going to count the words in an essay" argument. All the essays are uploaded to schools' websites. And a simple piece of code on the website can print the number of words an essay has (If a school really wanted to check if you follow instructions or not).

So, if your school says that the word limit is just a recommended limit, then you can usually go 10% above. But if it is not specified that the limit is just a "recommendation", then my suggestion is, "Do not go over the limit".
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If its recommended word limit - 10% deviation is ok, but I tend to stay within the word limit.

If its 500 word max - I either stop at 500 or 499.

And word!!

No point in exceeding maximum word limits. Simply shows you cannot follow rules.
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I have to do a tough decision. I'm not talking about goal essay or accomplishment essay, which I can write in 400 or 750 with no problems. I am talking about leadership essay. I've got an amazing story, but I can't put it in 500 words. Now I've got 800 and I came to the point, where deleting one more sentence will change the meaning or make it difficult to understand. So, I'm between hammer and anvil: sacrifice good story or exceed word limit...
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good point about "recommended" and "max" That means I need to shave off 5-10% of words from my Haas essays, doh!

I did my leadership essay in less than 500 words, and it was a pretty good experience too, so you can skimp on a few details and keep it under 500.
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5-10% worked for me.

L.