9th Circ. Relieves Broke Law School Grad Of Student Debt

Law360, Los Angeles (May 23, 2013, 8:19 PM EDT) -- The Ninth Circuit ruled Thursday that a broke law school graduate who amassed $85,000 in student debt wasn't obligated to repay the loans because he couldn't find a job that would pay him enough to satisfy loan payments exceeding $800 per month.

The appellate court held that Michael Hedlund, who failed the bar exam three times after graduating from Willamette Law School in Oregon, only filed for bankruptcy as a last resort, four years after his repayment obligations started. He made good faith efforts to repay the debt, according to the three-judge panel.

Derek Foran of Morrison & Foerster, which is...

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