I took some time and thought about what I'm trying to say because you're dealing with a lot right now. I deleted most of this and made it short. (If you can believe this is the short version.)
So:
Why would a therapist stress out an already depressed patient, and ignore the psychological advice from others who have a complete patient history? In short, your therapist sounds defensive, condescending, indifferent, and unwilling to discuss the simple question "Why?" He may have good reasons, but after you asked the question he didn't answer in a suitable or reassuring way that a patient can wrap their minds around and say "I understand." He is at least willing to discuss your questions in the next session, so go for it and get the answers. You already paid for the sessions, so use the time to your advantage. Unfortunate that guy is a bit unscrupulous and got the money, so you'll never get it back.
You had said you're in school in a small community. But if you have a large city anywhere nearby check for a transgender resource center in that city and call them. They generally keep lists and references for therapists, plus they may have a therapist on staff who could discuss your issues by phone. You can talk to them about setting up sessions over the phone, and if they can help you it'll open a whole new avenue for resolving your problems. And another benefit of using these resource centers is they normally charge a fee based only on what you can afford, and they will often waive fees for unemployed or fixed income individuals.
If you're attending a State funded college then check with their LGBT Resource Manager. They might be sitting on a gold mine of information, but don't count on it and have alternatives. And of course, some state colleges also have insurance coverage that's included in tuition, and you may find some help to pay the bills. It doesn't hurt to ask.
I wish you well, so good luck and hugs
Kathy