There is already conflict in his life at this point. The question is how best to resolve it. The school is in a position of authority and is telling the student that after spending tens of thousands of dollars at his school, he can't register for his final quarter necessary to graduate, unless he provides additional free work for them. This absolutely should not be tolerated.

Everyone in this thread is simply suggesting he talk to a lawyer. The lawyer can help guide him on the next action to take.