the student handbook states that the student handbook is NOT a contract.
Then how is it enforceable?
Its not. Though many courts have come around in the past decade to declare that student handbooks can be enforceable contracts if the right language is present, the fact that the school specifically said that the handbook is not a contract makes it unenforceable as a K for the simple fact that there was no manifestation of assent.
That said, there MUST be some sort of paperwork that defines and binds both the institution and the student's obligations in their relationship. Usually the handbook does just that. Since that is not the case here, the OP needs to find another document that meets this criteria before he can go any further.
Even if the handbook was deemed to be a contract, I still don't think the OP has a leg to stand on becuase the school effectively notified him of the change during 2L and OP still enrolled for 3L. This could be perceived by the court as assent to modification of the original handbook.
As to the OP being "screwed", I think he actually screwed himself. The ABA mandates that schools put minimum GPA requirements (cumulative and core credits) on their students as a pre-requisite to graduate. My school's minimimum was a 2.0 CUM and 2.5 in core. If the OP failed to meet even that, he has no business being a law school graduate anyway.He should count himself lucky that he was going to the school he was. Most others schools would have probably bounced him out prior. At least there he can take some of those classes over in the summer and graduate next winter.