31 May Small Victory For Law Grad: Court Cancels Half His Student Loans

The ABA Journal reports about a precedent setting appeals court ruling. Michael Eric Hedlund still owed $85,000 in student loans although he graduated law school back in 1997. A bankruptcy court ruled that since he made a good faith effort to cut expenses and pay the bills, $53,000 of the student loan debt could be discharged. The ruling was upheld on appeal as well.

Unfortunately, Hedlund had not passed the bar after two tries. On the day of his third try he locked his keys in his car and never went in and didn’t take it again. He’s been working as a probation officer making about $40,000 a year. He’s married with three children. He’s thrilled, as he put it, that he now owes a car instead of a house.

Sounds like this was a pretty desperate situation and obviously included his filing for bankruptcy. Not sure I’m going to recommend this route, but it seems good to know our law is there to give financially overburdened graduates a fresh start. Will we see more of these from grads who never find the right employment? Let’s hope not!