Tier 4 refusal and appeal, please help

Hi there, this is my first post here. First of all I would like to mention that is a great forum with truly helpful and great people in here. Hats off to everyone, especially senior members and moderators.

Coming to my problem, My student Visa ran out on 10th of October 2010 and I applied for a extension of 9th of October 2010. Today (06 Nov 10) my refusal letter came along. I am in real panic now.

I extended my visa on July 2009 (Full-time ACCA at Kaplan Financial) and was granted visa till October 2010. I passed all exams in all my semesters following the extension and had only one exam (ACCA P7) left to appear on June 2010 (within my visa period that is).
However, I narrowly failed my final remaining exam in June 2010 and have taken up a re-sit (full-time) for Dec 2010.
My college (Kaplan) made a special comment on my CAS application form that since I am giving one last exam my classes are less than 15 hours per week.



I applied for visa on 9th October 2010, a day before it expires (as mentioned above) and just refused a refusal with a right to appeal.

On the reasons provided for the refusal** they have mentioned that my course is less than 15hrs per week and my study is below degree level!!

Now ACCA is at least equivalent to degree level, UKBA should know that. Also since I am retaking a module and it is only my first re-sit attempt it is completely legitimate according to UKBA's own guidelines. Additionally, because it is a re-sit and its my last module of-course my tuition would obviously be less than 15hours per week. My institution is Highly Trusted in the UKBA register and they have issued me the CAS letter on which they clearly made the case (as mentioned above) that since I am studying my last and only (although its a resit) I am having tuition which is less than 15hours per week.(note: one module is only 10hours per week, so it is not that I am taking less than 15hours of tuition deliberately)


Also Note: I do not work in the UK, I have funds coming in from my country (legally) and they have given me the 10 points for maintenance and zero for attributes stating the above mentioned** reasons. My attendance has always been good and my results has always been good except my slip up one the June 2010 exams for which I have to my re-sit and in real trouble now.

Also, I need to mention that I have recently (10th October 10) received graduation certificate from the Oxford Brookes University (BSc Applied Accounting).

Now issues are:

What I am wondering is if I appeal I may lose the appeal as I may get the appeal date somewhere in Jan/Feb and the judge may refuse me visa as my results will be published in Feb as since by the time I go to the tribunal hearing my exam (07 Dec 10) will already be finished.

I DO NOT WANT TO LEAVE UK, my initial plan of action was to apply for a student extension and then apply for work permit (PSW) after my exams (Dec 10) and then start looking for work.
What I am worried now is that if I apply for a appeal for my Tier-4 it may be refused and I may have to leave UK.


So here I have a few questions -
1. If I lose my Tier-4 appeal will I be able to subsequently apply for Tier 1 (PSW) work permit from inside the UK stating a change of circumstances? (note my visa ran out on 10 October 2010)

2. If I do not wish to appeal can I directly apply for a Tier 1-PSW now from inside the UK stating my circumstances have changed?
If so, what is the procedure? (also note: on my refusal letter, forms and info pack sent from UKBA nothing of this sort is mentioned)

3. Also can I appeal now and if it is taking too long can I withdraw at will and then apply for Tier 1-PSW now from inside the UK stating my circumstances have changed? If not, can I withdraw and leave the UK and then apply for a PSW from my home country??

__________________________________________

Please PLEASE advise me what I should do.

One more thing to mention is I am living with my fiancee (on uk tier 4 visa) for three years now and plan to marry her soon, just wondering if I am eligible for any compassionate grounds?

Thank you so much for reading and helping out.

My sincere apologies for the length of my post, I am truly embarrassed.

Best Regards

Appeal within the time limit so that you're not an overstayer (section 3D).
Consider getting advice.