College tuition went to CA

I have a dilemma regarding a CA, Premier Credit Service, and an outstanding college tuition balance. The original debt of $247 dollars went to CA in November 2002. At the end of Decemeber 2002 the CA contacted me initially to make payment arrangements. We decided on $50 a month to be transferred from my checking account until it was paid off. Well, also in January 2003, I joined a CCCS to consolidate my remaining unsecured credit. Unfortunately, the CA payment went through right after my CCCS payment did, and funds weren't available to cover CA payment. I assumed (BAD) the CA payments would continue in February. I'm still on track with CCCS payments, but today I got a call from the CA saying they needed the balance of $747!!! I was shocked and asked for a break down. The rep could only tell me that the principal balance was $489 and the rest was fees and interest. After telling her what the original principal balance was ($247) she told me that that was not in her records. She treated me like I was stupid and explained that loans accumulate interest and fees and such. I told her it was not a loan, and that I did not sign any loan agreement with the original creditor..I said it was a debt. Then she asked me what the difference was between a loan and a debt, which I replied I signed an agreement to pay for tuition remainder (debt), not for a loan. She said she would send the the proof that I did, and promptly hung up on me. I called my CCCS and asked what I should do. They told me to get the contact info and account number from the CA, and they would attempt to attach it to my current plan..at the full amount the CA is asking, $747 and thats all they could do. I then contacted the school to see if they would accept my payment directly. An inexperienced clerk told me to deal directly with the CA, and would not provide me with any further assistance. I am at a total loss of what to do next. Should I just eat it and have the debt moved to CCCS at the CA's amount of $747. Or what? I'm trying to deal with my debts, by facing them and dealing with them. I also have kidney failure and struggling with work and life in general. I suffer from panic attacks and am on antidepressants. I don't want to declare bankruptcy, I want to own up to all my debts. Does anyone have advice for me?

Thank you kindly in advance,
David