what is theeffect of court attendance on school debt and ILR

Hi, am asking for a friend who owes school fees as a dependant.
ILR due early next year.
She studied for a degree as an international Studentand graduated miraculously owing approx. 7000 pounds balance to pay. They sent her an invoices pay half which she did at that time.
In another development, she nearly got a job last year but the school fail to confirm her result to employer. Recently the school had passed her details to debt collection agency to pay within 14days....;
My question ; what will be the effect of attending court, on this case on her ILR. (Bearing in mind she is dependent -)--what is her best bet in addressing this matter??!!.......Is it lawful for the school to pass the details of their graduates to debt collection agency or even go to court when they ruined her chance of getting a job, the only hope of paying them back???!!

Thanks for your reply

A debt collector is not court, but it can become court if she ignores the debt and it will affect her credit rating, even at debt collector stage.

what is her best bet in addressing this matter?

Pay the debt or arrange a monthly payment plan with the debt collector.

Is it lawful for the school to pass the details of their graduates to debt collection agency or even go to court

Yes because she owes the money and your friend can get a CCJ against her name too if she ignores the debt. Where it is a relatively small matter now, it can become significant if not addressed. Depending on what her qualifications and job aspirations are, if it becomes a court/bailiff issue, it could affect her job.

miraculously owing approx. 7000 pounds balance to pay

Miraculously??? I doubt it. Your friend would and should have known what she was signing up for in terms of fees as an international student.