When All We Have is Taken...

is a great song by Edison Glass.

But, in this case what I am referring to is when you've tried everything out there, and you can't seem to get any luck with renegotiating some aspect of your loans with the student loan company. This means, you have made at least one attempt in writing or you have had such bad service on the phone you can't even get an address to write to (Believe me, this does happen).

My first attempt was actually step 1, though I recommend writing the company itself first if possible.

Step 1) File a complaint with the Better Business Bureau. They are not regulatory, meaning they cannot enforce any settlement, but they will negotiate back and forth, and even suggest how to approach the settlement. This was successful in getting a temporary reduction payment, though not nearly anything helpful. It is good for a first step effort.

Step 2) File a complaint with the Federal Trade Commission. After doing so, you may feel completely useless and unhelped, but rest assured, the power of the FTC is in numbers, and when enough people have filed a complaint against your specific lender, then you are on to some serious progress. Once the complaints reach a certain amount the FTC will investigate and then start a class action lawsuit against the company, which they likely will find something if they are investigating (I got this scoop from a federal trade employee). So when you call, be prepared for to give your name, phone number, company you are filing a complaint against (their contact info if you have it), and the reason for the complaint. In my case, it was breach of contract or failure to cooperate in negotiating a settlement. This is because my promisorry note states (as yours likely does) that in the event of difficulty paying, they will assist you in an alternate repayment plan, to which I have been repeatedly told I can't, until I tried step 1.

And most importantly, DON'T wait until your loan is in default, it looks bad, once you anticipate or have the slightest hint of evidence you won't be able to make a payment, contact the loan company to ask what options are available, and then follow steps 1 and 2. Always in writing, what the company tells you over the phone doesn't matter.