The next steps are whatever steps are available within the internal administrative procedure provided for by your university. It is not feasible to attempt a legal action here unless you have extreme facts of manifestly improper misconduct by the school, generally involving discrimination based on race, gender, religion, etc. Courts will not substitute their judgment for that of the faculty and school administration when it comes to degree requirements or grades. In almost all cases, the school's admin procedure is the realistic end of the line for a dispute with the school about academic issues.
My responses to questions on Avvo are never intended as legal advice and must not be relied upon as legal advice. I give legal advice only in the course of an attorney-client relationship. Exchange of information through Avvo's Questions forum does not establish an attorney-client relationship with me. That relationship is established only by individual consultation and execution of a written agreement for legal services.