State College sent my debt for one class to collections, but it's been a few years. What are my options?

I was one course short of graduating so I had to sign up for a Independent Study Course to cover the requirements. This was at the same time I started my new job and had my 2nd child so I was a bit overwhelmed (excuses, excuses, I know) and mistakenly thought that if I just didn't pay the school then they'd force the class to be dropped. The "course" was literally nothing. The professor I spoke with asked me to read X amount of articles each week and summarize them. No classwork, no services were exchanged, and I never stepped foot on campus. The professor and I never even exchanged a 2nd email.

I intended to "retake" the course the following semester only to find that I owed little over $1000 for the course. I couldn't pay that as well as an extra $1000 to take it again so it put it off. It eventually went to collections which I have yet to pay. My questions is whether or not I'm just obligated to pay the balance at this point, if I could ride out the statute of limitations (it's closing on 4 years) or overall if I have any options at all other than paying $1000 to the university for absolutely nothing.