It’s an evil situation. There are thousands of dollars at stake. If loans are involved, then it also colors the next decade or more of the family’s financial life. Even with a a FERPA form in place, the dean, professor or staff can function as a border collie, separating out the student and leading the student to think that all problem identifying and problem solving is on the student’s plate. If we’re saying it is the family’s responsibility to pay (or borrow) then it should be the family unit that navigates to a solution – which may be the student withdraws or the student earns an Incomplete - or fails. Keep in mind, please, that parents/guardians usually have some life experience with poor staffing or poor management. The parents may be able to ask questions that don’t occur to the student - and, in the long run, may lead to improvements in the class or department for future students.
But expecting the family to pay and only the student to interact gives the college maximum leverage and minimal accountability.