So I think we all knew that this would happen. But sophomore year Ethan and Kathy get back together. Around the same time the couple that adopted her daughter pass away in a car accident, and Kathy and Ethan decide to take custody of Hedy back, because she's only a year old.
That year Ethan (who chose not to sleep with Layla) loses his virginity to Kathy and Kathy gets pregnant again.
When they decide to keep their son, Lucas, Ethan finds it in his best interest to drop out of school and work at the butcher shop taking Ben & Ricky's old positions so that Kathy can finish school.
They eventually elope. & move into the apartment above the butcher shop, like Amy, Ricky, & John did.
Kathy graduates with honors and inherits all of her parents' money after they too pass away of car accidents. And Kathy sells everything as she falls into a short depression and wants no memory of people she's lost in her life. But soon comes out of it.
