Failing out of graduate school
You say the director of the program is sympathetic to you.  Why not talk to them?  

This may be a case where the devil is truly in the details.  You might be able to take additional classes to bring up your GPA.  You may be allowed to retake classes.  These are the kind of high level alternative options that a program director will know.  Especially with the health issues and assault, the director may have a case to file some kind of waiver.  (Probably to allow you to retake one or more classes.)

You also have to be honest with the director (and yourself) about your workload &amp; course load balancing.  Is it realistic to expect that you will be able to get straight A's from here on out while working full time to pay for expenses?  It sounds like that will be difficult.  Check with the director about other options (a semester off, becoming part time, grants, loans).

Being proactive and starting the conversation with the director is probably the best way to move forward.  

Lastly, even if you find that walking away from this program is the right, best, "least worst", or only option for now, it does not mean that this is your one and only shot at a Master's degree.  My Undergraduate gpa was not stellar.  I was able to show that I had matured from that time (only four years before I applied) by taking graduate level courses and succeeding in them, which led to me getting two graduate degrees (not at the same time).  In my experience, grades alone are not the only thing that grad schools look at when you apply.