Transcript hold at college. How to finish CS degree elsewhere?

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Indeed, they will not let you off that lightly. It may take 1,2 year or even a decade, but they will eventually find a method to screw you over. After three years of not contacting me, they submitted my $2,000 debt to a law firm in my home country, since I was an international student. So far may their petty behavior go if they so choose. I advise you to pay it off on a monthly payment, or it will come back to haunt you later in life.

How is this petty behavior?  If you owed me $2,000, I'd try to get it from you as well.  You OWE them that money.  Your behavior in not paying is the problem.

This does appear to be the case.  There's no indication that this debt was incurred mistakenly or fraudulently and so it seems the honest thing to simply pay it off.  It may also be the simplest way to solve the initial problem.