Based on what yo are telling me, there are several issues at hand. Student loans are federally subsidized loans, fighting re-payment regardless of the cause is difficult. Therefore I would suggest action being taken towards the school. The easiest way to let them know that you are serious would be a 93A demand for deceptive business practice. The website of the Attorney General has useful information regarding the drafting and the laws behind this letter, be sure that the letter is sent certified return receipt, so that you will have a documented time stamp to begin the count of 30 days that they will have to answer you complaint.