Negotiate with CA on tuition owed

You can always negotiate with the CA so that they forgive the late fees that you have incurred. However, it will remain the discretion of the CA whether or not they will forgive the late fees.

As far as removing the negative mark from your credit report is concerned, you should go for a pay for delete agreement with the CA before paying them. This may make it binding on the CA to remove the negative item from your credit report once you pay off your school loans in full.

Pay for delete will not happen.

Tuition accounts are subject to collection fees. The school may or may not choose to wave them, particularly if you are looking at re-enrolling or are after your transcripts. Public schools (state schools) can be tougher because of budget cuts.

Even if you pay off the tution in full, the negative item will not be removed from your credit report. It will remain on your credit report for 7 years. The account status will only be updated as "Paid in Full".