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Parent Took Out Student Loans in Child's Name Without Her Knowledge

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  • 08-27-2013, 05:58 PM
    danie311
    Parent Took Out Student Loans in Child's Name Without Her Knowledge
    My question involves collection proceedings in the State of: Massachusetts

    My sister graduated school a few years back. After graduation, parents were receiving collections calls regarding student loan debt, that my father was not aware of. After discovering 6 or 7 student loans taken out in his name, by my mother, my father consolidated most of the loans. He contacted my sister for help in paying some of these off. My sister recently needed a copy of a promissory note for one of the private student loans that was apparently in her name. The documents showed that my mother had forged my sister's signature, as well as my grandmother's signature (she is now deceased) and was under the assumption that my parents were paying for her student loans, as my mother had promised they would. It is very obvious that this is my mother's writing, and the documents even show that they were faxed from my mother's workplace back in 2009. I also was a witness to her forging my grandmother's name on a student loan, although I do not remember the year or the loan.

    Needless to say, my parents are now going through a nasty divorce. They are working with the lawyers to figure out the student loan debt that is in my father's name. My father is not going after my mother for fraud for forging his signature or using his social security number (I'm not sure he even could since they were married at the time). My sister, however, is struggling with damaged credit because of the fraud my mother has committed. She now has to contact each loan to see which are in her name and if she signed agreed to them herself. She was also told by the lender to file a police report.


    My questions are as follows:

    1. Since she did not knowingly take out a loan in her name, is my sister still responsible for the debt?

    2. If convicted of identity theft or fraud, who is responsible for the disputed debt?

    3. If my mother is found responsible for the debt for the fraud she committed, would my father be somehow responsible for this, since they were married at the time and are now divorcing?

    4. What, if anything, will happen to my mother if she is found guilty of student loan fraud? Can she also be found guilty for forging my grandmother's signature as cosigner (even though she is now deceased)?

    5. What are the next steps?
  • 08-27-2013, 06:17 PM
    Disagreeable
    Re: Student Loan Fraud
    Until she can establish she had nothing to do with taking out a specific loan, release from liability is moot.
  • 08-27-2013, 06:24 PM
    danie311
    Re: Student Loan Fraud
    It would be her word against my mother's, correct? As I stated it is VERY obvious that the signature is my mother's handwriting. How else would the lender establish that she had nothing to do with the debt?
  • 08-27-2013, 06:25 PM
    Disagreeable
    Re: Student Loan Fraud
    I would say more importantly, how is she going to prove it was not her.

    Quote:

    Quoting danie311
    View Post
    It would be her word against my mother's, correct? As I stated it is VERY obvious that the signature is my mother's handwriting. How else would the lender establish that she had nothing to do with the debt?

  • 08-27-2013, 06:29 PM
    danie311
    Re: Student Loan Fraud
    Well, I don't know. I know she needs a police report. It is not her signature or my grandmother's signature as cosigner. It is not even close to either signature, and it is blatantly obvious it's my mother's writing. It is an obvious forgery that was committed, and my questions are in regards to forgery.
  • 08-27-2013, 06:32 PM
    Disagreeable
    Re: Student Loan Fraud
    She really needs to file a police report. She will likely need to hire a lawyer and formally press charges as well as obtain conviction against mom, before the debt is relieved from her.
  • 08-27-2013, 06:34 PM
    danie311
    Re: Student Loan Fraud
    Thank you for your response. I definitely understand there is a need for the police report, and a lawyer. My questions were as follows:

    1. Since she did not knowingly take out a loan in her name, is my sister still responsible for the debt?

    2. If convicted of identity theft or fraud, who is responsible for the disputed debt?

    3. If my mother is found responsible for the debt for the fraud she committed, would my father be somehow responsible for this, since they were married at the time and are now divorcing?

    4. What, if anything, will happen to my mother if she is found guilty of student loan fraud? Can she also be found guilty for forging my grandmother's signature as cosigner (even though she is now deceased)?

    5. What are the next steps?
  • 08-27-2013, 06:39 PM
    Disagreeable
    Re: Student Loan Fraud
    I outlined the likely position of the loan company. Proving your sister is not liable will likely cost as much as the loans I suspect, unless mom is convicted. Sis's biggest problem might be that this is a 3 way contract. If the loan is ruled invalid and they recall it from the school, the school can come after Sis, who signed the payment agreements.
  • 08-27-2013, 11:40 PM
    llworking
    Re: Student Loan Fraud
    Quote:

    Quoting Disagreeable
    View Post
    I outlined the likely position of the loan company. Proving your sister is not liable will likely cost as much as the loans I suspect, unless mom is convicted. Sis's biggest problem might be that this is a 3 way contract. If the loan is ruled invalid and they recall it from the school, the school can come after Sis, who signed the payment agreements.

    You are not answering the questions asked, nor do you have any idea whatsoever whether or not these loans went towards actual school expenses...or went through the school at all.

    - - - Updated - - -

    Quote:

    Quoting danie311
    View Post
    Thank you for your response. I definitely understand there is a need for the police report, and a lawyer. My questions were as follows:

    1. Since she did not knowingly take out a loan in her name, is my sister still responsible for the debt?

    If identity theft is proven, your sister would not be responsible for the loans. However, as the other poster said, if the loans went through the school, the lender may take the money back from the school, which would put your sister's educational credentials at risk unless she pays the school for the things that the loans covered.

    Quote:

    2. If convicted of identity theft or fraud, who is responsible for the disputed debt?
    Your mother would likely be responsible for making restitution as part of a criminal case.

    Quote:

    3. If my mother is found responsible for the debt for the fraud she committed, would my father be somehow responsible for this, since they were married at the time and are now divorcing?
    Unlikely as it would be restitution for part of a criminal case.

    Quote:

    4. What, if anything, will happen to my mother if she is found guilty of student loan fraud? Can she also be found guilty for forging my grandmother's signature as cosigner (even though she is now deceased)?
    She can be found guilty of identity theft for all of the signatures she forged.

    Quote:

    5. What are the next steps?
    For me, first, finding out exactly what loans are out there and in whose name. Second, finding out where the money from the loans actually went. If the loans actually paid for your sister's education, and your mother didn't spend any of the money for anything else, then I might re-think the whole idea of trying to get mom arrested for identity theft.
  • 08-28-2013, 07:22 AM
    Disagreeable
    Re: Parent Took Out Student Loans in Child's Name Without Her Knowledge
    I suggest you read what I posted again. I said might be a 3 way contract. None of OP's questions can be answered with any certainty, until fraud is established to a standard accepted by the loan company and the law. OP has no real way of knowing whether his sister is lying just as mom apparently did.
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