Can I sue a private university?

What is the name of your state (only U.S. law)? Florida

I am a student at a private university attending online. I have completed all coursework for my undergrad degree, except the Practicum which includes an externship. The school has been unable to place me into an externship due to the competetion of local schools. I missed graduation in March 2010 because of this. I have been taking classes (repeating classes) to keep my financial aid intact and because the school insists that they will place me very soon. They have named companies that they have "verbal" contracts with to accept me. They have made it very clear that I will need to be available Mon through Fri from 7am to 5 pm in order to complete the externship, which is only 80 hours. I had to take classes again in Summer A and B sessions once again so that I will not have to start repaying the $57,000 in Stafford loans that I owe. Once you are not enrolled at least half-time, you must start repaying some of the loans immediately and others after a 6 month grace period. I applied for this externship back in September 2009, well before the application cut-off. They finally have a placement for me... however, we are now in week 7 of the Summer B session. The class ends next week. I made it very clear to them 2 months ago, that due to financial hardship I MUST go to work at the end of Session B. They are asking me to do an extension and just work at the externship a couple days a week till complete. Honestly, I have put off working since March to make sure I was available for when the externship was ready. I just cannot postpone my life anymore. I have been surviving on student loans since then. I am out of aid and don't have any other options now. I have many emails from the school naming the businesses they have verbal contracts with, and how they make it seem that at any moment now, I might be starting the externship. They have sent emails saying that I need to prepare by taking time off of work/making arrangements, etc. I would hate to just give up now that I am so close finishing. On the other hand though, I have court coming up in a month for the modification of custody and support for one of my children and the judge is going to wonder how I'm supporting them. I just feel that since they were not able to place me for the externship back in March and I have waited and waited, they should compensate me in some way for all the financial problems it has caused. I have never missed a term and have an overall GPA of 3.3. Please tell me if there's anything I can do to seek justice for their negligence. Thank you.

Nothing says that you can't sue the university, but nothing says you'll win either. Did the university have a contract stating that they would provide an externship by a certain time?

I cannot find a contract. However, after multiple conversations with employees at the college, they state that I cannot graduate without externship completion. Therefore, I cannot use my education until they are able to fulfill that requirement.

Are they still getting tuition from you while you wait for the externship?

Look in your local phone book for lawyers who offer free initial consults. See what the local pros think of your problem.
Tell us about this externship. Was it listed as a graduation requirement when you applied? Did you start looking for your externship at the start of your Junior year or Senior year? What does your faculty adviser say? Have you spoken with the Dean of Students?
I'm alarmed that you seem to be repeating courses. I can't imagine a reputable university allowing this. I smell fraud. Surely you could have taken Intro to Art History or some such.

Good luck

I have a feeling this is one of the online universities currently under fire for various misleading practices...

OP, would this be one of those? Who are nationally but not regionally accredited?