Based on the limited info you provided (which I selectively cut/paste above), the place sounds toxic to me. "Looking the other way" because you feel the person has some kind of monopoly is a risky thing to your well being and that of others behind you. I suggest you evaluate other options with a creative and open mind - including other martial arts.
I just feel like maybe more options would be open to me if I could get my black belt... ?? Maybe we could just go start our own club at a college, try to get the support of our affiliation some how? Not sure.