OK, first off, hanging up is not going to resolve your issue. Right now, you need an attorney yourself (in CA) who can review the contract you have with the school and determine if you do owe them money and what your options are. DO NOT LET THIS GO! Every day, you are accruing additional interest on that "loan" from the school, if it is not a valid loan, then you need to get them to remove it from their books and your credit report and give you your transcripts. AVVO has many good education lawyers in CA, so you can find someone who will be able to help you.
Carol Johnson Law Firm, P.A. : (727) 647-6645 : email@example.com : Wills, Trusts, Real Property, Probate, Special Needs: Information provided here is anecdotal and should not be relied upon or considered legal advice. Every matter is different and answers given here are general in nature and may not reflect current Florida law at the time you are reading this posting. Please contact me if you feel you need additional assistance with your matter.
I agree with Ms. Johnson not to let this go and that you need an attorney in California who is versed in contract and debt law regarding college student loans. Certain student loans are treated differently than traditional debts such as a credit card debt. It is possible that the time to collect on this debt has expired and they must give you your grades. However, you must speak with local counsel to determine and resolve this issue.