Can I sue ITT Tech for negligence and mental distress?

This quarter I had an overage of $309 in financial aid; which means tuition was $309 less than the total of my federal aid. When I first enrolled I agreed to that ITT Tech could get any overages back to pay on my student loans. They also have a form you can fill out stating that you need the money and want to defer it to yourself instead of back to the school. I filled out one of those forms and was approved to receive the overages. The form was in my student file but the director of finance forgot to add that form to her records so when the time came she could refund the overage to me instead of to the student loans. In short, I was supposed to get the money but due to a mistake made by the director of finance it went to pay on my student loans. I have been unemployed for the past 2+ years and was depending on that money so that I could pay my child support this month (I am $16,000 in arrears), but now I am unable to pay and face having my drivers license suspended and/or jail time; in turn will cause me to be dropped from school. If I am incarcerated for longer than 6 months I will not be able to enroll back into school until I start paying back or have payed in full my student loans.