I'm in the same Property class as Comm-Law, and while I usually feel bad for any of my fellow classmates getting beat up, it was awesome to see our gunner get pounded on.
We are three weeks into 1L, and he's already over his question limit for law school... 

Please, not another car in Ann Arbor    As far as classes, library and the bar, you will not need a car for U of M. Parking is really awful in Ann Arbor, and driving by the law schools is crazy. The north-west corner of the Law Quad is the main crossing for undergrads, and you can sit there forever in your car waiting for them to cross the street.
Like Yorba mentioned, you will need a car for summer employment, but not for school. I had one while in undergrad there, living in South Quad across from the Law Quad, and I just kept it parked behind the athletic department area 99% of the time.

I don't know the apartment prices, 'cause my GF bought a condo. But, I can tell you by comparing the condo markets in A2, Ypsi, and Milan, that Milan is far, far cheaper. A condo that goes for $170,000 in A2, and $150,000 in Ypsi, goes for about $100,000 in Milan.
Right now the rental market is soft around Ypsi and EMU. Ann Arbor is always hot for rentals because of U of M.

More from Michigan's site:
Michigan is 1 of the top 3 of our peer law schools in the percentage of graduates taking their first job in public interest (judicial clerkship, public interest, and government).

http://www.law.umich.edu/currentstudents/PublicService/index.htm

And, towards the bottom of their FAQ for Prospective Students:
Is there any help for students who want to pursue Public Interest work?

The Public Service Office provides counseling to students who want to pursue jobs in public interest or in the public sector. The University of Michigan was recognized in 2001 as the Public Interest School of the Year by the student division of the ABA. The Debt Management Program also aids graduates who are interested in public interest and public service by helping them pay back a proportion of their loans based on their income. This is one of the strongest and most progressive programs of its kind in the country; there is no requirement that the job be of any particular kind, other than that it be law-related, which is different from most other schools' policies. Last year, about $400,000 was distributed to almost 100 people. In addition, there are student funded fellowships for students working in unpaid public interest or public sector internships; last year, more than 65 students received fellowships of $3200 each.

I don't attend U of M Law, so all I can give you is what's up on their page.