If this is true, I suspect we'll hear more testimonials to this in the next week or so once the word gets around the Internet. MIT's The Tech, a student run online newspaper, reports students who settle with the RIAA in file sharing suits are encouraged to leave school to pay their debts to the RIAA:

In fact, the RIAA has been known to suggest that students drop out of college or go to community college in order to be able to afford settlements.

Just makes the whole thing more disgusting, doesn't it?