F-1 status terminated

Hi, I came here to the US on March , on student visa F-1, I enrolled in English as Second language program, I payed the first session which was really expensive, then when I finished the first session I find out that I am completely out of financial resources 'No money', so I looked for alternative which is work off-campus , first I applied for a social I got one, but it was not valid unless I gut DHS work authorization. called DHS and ask them how I get their authorization, they responded saying I have to file I-765 form under the section of economic hardship, and in order to proof my economic hardship, need to pass by my school designated officer. I called this gentleman asking him what should I do in order to get this done through the school, he told me I am not eligible to work off-campus weather under OPT/CPT because I am ESL student nor under economic hardship, and that he will terminated my status, and threaten me that he'll call the DHS and give them my address and they'll come and knock my door. unless I pay another 9000$ (which I don't have, because I spent all my money on the medical bills that this school insurance does not cover. I paid for useless insurance) just for 2 months of English language training. My question is, what does it mean when my status is terminated knowing my visa will expire the next year 2013, what is next going to happen to me, can I adjust my status in this circumstances, will DHS really knock on my door or they will just send me a letter ? Ido not want to go to jail.