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Ask your parents to sit down with you and go through what all the living costs are - gas, electric, water, insurance, etc. I am sure you are pulling your weight on this at home and may have already done this so you can contribute fairly. Perhaps they are worried about the loss of income if you leave their home - but there are always students looking for digs, and I suspect some parents may be happier for their kids to move into a home type enviroment - so they could always rent your room. Perhaps you could suggest this.
As to the college ripping you off - it was your employer that agreed to pay the fees I take it, and I take it they have renaged upon that deal, the college is out of pocket perhaps? Find out if all your fees were paid up front for starters. If they have had the money, they should provide the service - provided they were not entitled to a refund.
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