[ScottG]

My question involves collection proceedings in the State of: Washington

*If this is in the wrong section please advise me to the proper section.*

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Hello, I am Scott. Thank you in advance for reading this.

I have a friend, "Katie", who is in a serious financial and domestic pickle. She comes from a low income family, and she and her mother took out 2 stafford loans last year to pay for a 4 year university. The loans are in Katie's name. At the time the mother convinced Katie to take out the loans to help her purchase a laptop and a car that would both be used for school. Katie still lives at home.

This did not happen. Initially, Katie's mom asked to burrow the first trimesters loan money to help pay for medical bills. The second loan installment was used to move. The mother demanded the third loan installment and has gambled it all away. Katie has not seen/used ANY of the loan money. Now Katie is ~6,000 dollars in debt.

Katie is fearful of being kicked out of her home if she does not continue to give the loan money to her mother. The mother has promised to pay back the loans fully. But I do not believe the mother has the resources or the moral character to pay back the loan.

What steps, if any, can Katie take to protect herself if her mother defaults and does not pay Katie back?


Thank you so much for your time. Any helpful response is much appreciated

[Betty3]

You said the loans are in Katie's name. I assume Katie & her Mother both signed the loan papers. Is that correct? Thanks.

[LawResearcherMissy]

Katie needs to MOVE OUT. Failing that, she needs to have the loan funds deposited in her school account to pay her tuition directly.


Stafford loans are NOT to be used for anything other than school related bills - the cost of tuition being the primary bill, followed by books, dorm fees, and other expenses directly related to the cost of education.

What steps, if any, can Katie take to protect herself if her mother defaults and does not pay Katie back?

This will sound very harsh, but there's no gentle way to put it: It's too late for Katie to protect herself. If she fails to sprout a backbone and start telling her mother NO, she's going to be on the hook for a lot of money, with no diploma to show for it.