This happened in Oklahoma. Police pulled over a couple driving a stolen car. The fact that the car was stolen isn't even the big part of the story. it's what they found IN the car... besides the people... that is of interest.
In a nutshell, this seems like a case where the student didn't realize what the school policy was, and the school didn't remind her of her financial responsibility and what the repercussions would be if they were not met.