Problem solved!!

The director of the program called me this evening and told me to fax to the bill to her. and she will take it from here. I don't need to pay a cent and my don't have do anything to recover my credit history..

For those who have the same situation, don't compromise. That's my suggestion. don't listen to some nonsense--it's just small amount of money--it's complicated--nothing is small and nothing is complicated!!