Workforce Grant & College

nj-i was layed off from work on 4-01 i filed for unemployment & was awarded a one time $4000.00 Workforce grant for college tuition,books & fees towards the nursing program anything over $4000.00 is my responsibility.i have only used $2200.00 of the $4000.00. i saw the director of billing & she tells me that workforce (which is pd by the county)is taking to long to pay & the school wants their money.i contacted workforce in the county and they tell me that a contract was signed by me, the school & the county & that i am not liable for payment. but the school states that if i don't pay for the spring sumester i cannot register for the summer semester & this unpaid bill will go on my credit report & my transcripts will be held so i can't transfer out do i have a case to sue the school for not honoring the signed contract & for harrassment?
thanks