As a broke, jobless college student, nothing good can come to you from getting credit cards. I would wait until you get a steady job to even think about applying for anything. The collection agency will most likely be willing to settle the debt for a percentage of the amount owed--setting up a payment plan should also be no problem. If you want that collection off your reports quick, you'll have to get the CA to agree to a PFD, but that will most likely require payment-in-full.
Do you get financial aid? If you're 21 years old and your financial situation is that bad, you should be able to qualify for federal work study, which gets you a part-time job on campus. Also, have you filed your taxes? I would imagine you'd be able to qualify for the American Opportunity Tax Credit, up to $1000 of which is refundable. This could be used to easily close up that collection account.
Furthermore, in order to help avoid those nasty medical bills, you should see if there are any community clinics in your area that offer services on a sliding scale. There will usually be little-to-no cost for someone with no income. Your school may even offer discounted medical care to students. Information on discounted health care can usually be found on your city/county health departments' websites.
