Wow, I couldn't imagine what this must feel like. Unfortunately, I don't think there is really a great answer. As previously mentioned, quitting school may not be the best thing to do, unless it turns out to be the only thing to do. My concern would be if you leave school and stay with the company, is that manager going to find another reason to not keep you around?
Then where would you be?
Whatever you decide, I wish you the best of luck. Keep us updated.

Think about it this way. What do you REALLY want to do with your life? Do you want to sell shoes, or do you want to educate people? Who is deciding your fate? You, or some asshat? If you're gong to get fired over it, tear the place apart the day before. You're not out anything except one refference...

We are all slaves to the almighty dollar, but we can make dreams a reality if we really want to. Some not as easily as others, but it can be done. You may have to take out a student loan and see if you are eligble for a cost of living loan. Yeah, it sucks, but you are pursuing what you want to do with your life.

After graduation and out looking for a real job, one needs all the refferences they can get. I've learned to NEVER burn bridges, because you never know a day may come when you will have little to no choice but to cross it again. Plus, it offers networking. With a degree in education, and his managerial experience, that could lead to a position in corporate training.

The problem is, it seems he can not have his education without burning a bridge. I suppose gutting the current place of employment for the assholery isn't good advice, but don't let them decide your future.