Education Loan Issue

I took up a loan to pursue MBA in a particular college from a bank that the college had a tie-up with. Very soon (in 10 days) I got selected for a better college and decided to pursue my MBA there. I requested the college authorities to cancel my seat (the seats were still being filled and the college also had a waiting list for students willing to join) but the college did not do so. I even requested the bank to cancel my loan but since the college had a tie up with the bank, they did not agree to this as well.
As a proof of my explanation, all I have now is a few mails written to the college authorities requesting them and their reply to me denying my request.
I really do not wish to end up paying for the loan that I have not availed of at the end of the period.
My question to you is whether I can go to consumer court once these guys approach me to start paying them the money (Please note that currently I am not in a position to spare time for all this).
Also I would like to know what does the law say for a situation like this.
I would really appreciate your advice on this.

Shilpa