CATCRAZED, I think you two were put in a situation where it sounded great to get a purebred German Shepard and make some money putting him out to stud. However since he became ill, and it sounds like you both are really not in the position to pay for his care and medication, I'm sure you have good intentions, but this problem won't be for just a day or a week or for who knows how long, and I know that you have come to love him and want to help him, don't you think for the dogs sake he should go to a German Shepard rescue where they will find someone who has the resources to pay for his care and will take wonderful care of him. Maybe if you do this, you could have visitation days with him. I think at this point you should discuss this with your roomate and maybe do what is best for the dog.
Jackie