She also said this:
Quote Quoting SunLoverNY
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I did not receive any loans because between myself and my husband, our contribution toward the tuition was too high to get any loan assistance....

They say that there were 3 alleged loans---a Supplemental Loan for Students in the amount of $4,000, a subsidized Stafford loan in the amount of $7,500, and an unsubsidized Stafford loan in the amount of $4,515.
It's not clear why she would apply for multiple loans despite her belief that she did not qualify for student loans. Also, neither unsubsidized Stafford loans nor SLS loans are need-based.

It seems quite possible that the money was disbursed to the school and distributed along with any stipend, or perhaps that the distributions were mistaken for a stipend. I can't rule out the exceptionally small possibility that the loan applications were denied yet somehow reflected in the bank's records as having been paid, but if it were me I would start with the much more probable possibility -- that the money went to the nursing school -- and investigate that angle.