diff --git a/lms/djangoapps/courseware/course_settings.py b/lms/djangoapps/courseware/course_settings.py
new file mode 100644
index 0000000000..a58fc9042e
--- /dev/null
+++ b/lms/djangoapps/courseware/course_settings.py
@@ -0,0 +1,92 @@
+"""
+Course settings module. All settings in the global_settings are
+first applied, and then any settings in the settings.DATA_DIR/course_settings.json
+are applied. A setting must be in ALL_CAPS. 
+    
+Settings are used by calling
+
+from courseware.course_settings import course_settings
+
+Note that courseware.course_settings.course_settings is not a module -- it's an object. So 
+importing individual settings is not possible:
+
+from courseware.course_settings.course_settings import GRADER  # This won't work.
+
+"""
+import json
+import logging
+
+from django.conf import settings
+
+from xmodule import graders
+
+log = logging.getLogger("mitx.courseware")
+
+global_settings_json = """
+{
+	"GRADER" : [
+	    {
+	        "type" : "Homework",
+	        "min_count" : 12,
+	        "drop_count" : 2,
+	        "short_label" : "HW",
+	        "weight" : 0.15
+	    },
+	    {
+	        "type" : "Lab",
+	        "min_count" : 12,
+	        "drop_count" : 2,
+	        "category" : "Labs",
+	        "weight" : 0.15
+	    },
+	    {
+	        "type" : "Midterm",
+	        "name" : "Midterm Exam",
+	        "short_label" : "Midterm",
+	        "weight" : 0.3
+	    },
+	    {
+	        "type" : "Final",
+	        "name" : "Final Exam",
+	        "short_label" : "Final",
+	        "weight" : 0.4
+	    }
+	],
+	"GRADE_CUTOFFS" : {
+		"A" : 0.87, 
+		"B" : 0.7, 
+		"C" : 0.6
+	}
+}
+""" 
+
+
+class Settings(object):
+    def __init__(self):
+        
+        # Load the global settings as a dictionary
+        global_settings = json.loads(global_settings_json)
+        
+        
+        # Load the course settings as a dictionary
+        course_settings = {}
+        try:
+            with open( settings.DATA_DIR + "/course_settings.json") as course_settings_file:
+                course_settings_string = course_settings_file.read()
+            course_settings = json.loads(course_settings_string)
+        except IOError:
+            log.warning("Unable to load course settings file from " + str(settings.DATA_DIR) + "/course_settings.json")
+        
+        
+        # Override any global settings with the course settings
+        global_settings.update(course_settings)
+        
+        # Now, set the properties from the course settings on ourselves
+        for setting in global_settings:
+            setting_value = global_settings[setting]
+            setattr(self, setting, setting_value)
+                
+        # Here is where we should parse any configurations, so that we can fail early
+        self.GRADER = graders.grader_from_conf(self.GRADER)
+
+course_settings = Settings()
diff --git a/lms/djangoapps/courseware/global_course_settings.py b/lms/djangoapps/courseware/global_course_settings.py
deleted file mode 100644
index f4e9696d1d..0000000000
--- a/lms/djangoapps/courseware/global_course_settings.py
+++ /dev/null
@@ -1,28 +0,0 @@
-GRADER = [
-    {
-        'type' : "Homework",
-        'min_count' : 12,
-        'drop_count' : 2,
-        'short_label' : "HW",
-        'weight' : 0.15,
-    },
-    {
-        'type' : "Lab",
-        'min_count' : 12,
-        'drop_count' : 2,
-        'category' : "Labs",
-        'weight' : 0.15
-    },
-    {
-        'type' : "Midterm",
-        'name' : "Midterm Exam",
-        'short_label' : "Midterm",
-        'weight' : 0.3,
-    },
-    {
-        'type' : "Final",
-        'name' : "Final Exam",
-        'short_label' : "Final",
-        'weight' : 0.4,
-    }
-]
diff --git a/lms/djangoapps/courseware/grades.py b/lms/djangoapps/courseware/grades.py
index 00bdffb697..b31f4421cf 100644
--- a/lms/djangoapps/courseware/grades.py
+++ b/lms/djangoapps/courseware/grades.py
@@ -1,20 +1,3 @@
-"""
-Course settings module. The settings are based of django.conf. All settings in
-courseware.global_course_settings are first applied, and then any settings
-in the settings.DATA_DIR/course_settings.py are applied. A setting must be
-in ALL_CAPS.
-    
-Settings are used by calling
-    
-from courseware import course_settings
-
-Note that courseware.course_settings is not a module -- it's an object. So 
-importing individual settings is not possible:
-
-from courseware.course_settings import GRADER  # This won't work.
-
-"""
-
 from lxml import etree
 import random
 import imp
@@ -24,7 +7,7 @@ import types
 
 from django.conf import settings
 
-from courseware import global_course_settings
+from courseware.course_settings import course_settings
 from xmodule import graders
 from xmodule.graders import Score
 from models import StudentModule
@@ -33,39 +16,6 @@ import xmodule
 
 _log = logging.getLogger("mitx.courseware")
 
-class Settings(object):
-    def __init__(self):
-        # update this dict from global settings (but only for ALL_CAPS settings)
-        for setting in dir(global_course_settings):
-            if setting == setting.upper():
-                setattr(self, setting, getattr(global_course_settings, setting))
-        
-        
-        data_dir = settings.DATA_DIR
-        
-        fp = None
-        try:
-            fp, pathname, description = imp.find_module("course_settings", [data_dir])
-            mod = imp.load_module("course_settings", fp, pathname, description)
-        except Exception as e:
-            _log.exception("Unable to import course settings file from " + data_dir + ". Error: " + str(e))
-            mod = types.ModuleType('course_settings')
-        finally:
-            if fp:
-                fp.close()
-                
-        for setting in dir(mod):
-            if setting == setting.upper():
-                setting_value = getattr(mod, setting)
-                setattr(self, setting, setting_value)
-                
-        # Here is where we should parse any configurations, so that we can fail early
-        self.GRADER = graders.grader_from_conf(self.GRADER)
-
-course_settings = Settings()
-
-
-
 
 def grade_sheet(student,coursename=None):
     """