I have been through similar situations (my therapist now qualifies the color of my hair as a sign of a treatment issue, along with tattoos and piercings)
On a serious note, as DemExPat said - is the social worker the one doing the treatment? If not, you should try and give it a shot, if you feel up to it. I have heard DBT works great. (Never been through it myself, though it has been suggested multiple times, just no where around here to get into a program.) I know two of the many day treatment programs I have been in have had the most horrible social workers who do my intake, but the groups, and the therapists who run the groups were very cool, and dedicated to helping me get well. (It sucks that they have these morons as your introduction to the group - I have walked out of one day treatment, and not looked back, for that reason alone, too).
It sounds like you had a week from hell.
The mental health profession is a frightening one - you never know what you're going to get. I had just about given up on getting any care from the whole profession, when I lucked out and got an ex-hippie for my therapist, and a p-doc who believes in alternative therapy (herbs and such).
As far as school goes, they do get funky when having to deal with anyone with more than depression over a bad grade it seems. (before I get flamed, I am just speaking of my OWN experience). They should be able to provide you with an alternative for care though. Usually they have lists/numbers of therapists who can do some more intensive treatment if you need it.
I read in one of the older books on Borderline Personality Disorder, "I Hate You, Don't Leave Me," that it seems as if people who suffer from Borderline are actually fighting existential questions...
Good luck, and I'm sorry to hear how much this past month has stunk.