Tim Arndt, a 24-year-old attending Metro State College of Denver, was facing a jury trial over possession charges that were incurred when he was stopped by police while walking in the Capitol Hill neighborhood and found to be carrying a small amount of marijuana. 

Under federal law, students convicted of possession charges can lose financial aid from the government.

Instead of going to trial, Arndt settled with the city by pleading guilty to possession of drug paraphernalia, a charge that will allow him to keep the money he is receiving for school. 

The Denver ordinance, which legalizes the private possession of up to an ounce of marijuana for adults 21 years and older, has been tested in city courts before, where offenders are still charged for breaking state laws against pot.

Denver voters passed an initiative legalizing private possession of marijuana in 2005, along with another measure to make such cases a "lowest law-enforcement priority" for police in 2007. 

Read Fighting Possession Tickets Bodes Well For Pot Offenders In Denver for more information about Denver's high-profile pot cases, many of which featured students who stood to lose financial aid.