Mom Took Out $20K Student Loan in Daughter's Name: What to Do?

Student Loan Fraud by Parent

• 🎯 A 23-year-old is seeking guidance on two student loans taken out in her name by her mother, totaling over $40,000.
• 💡 The first loan was for $20,000, with $3,000 unaccounted for, which the daughter initially accepted, assuming it covered living expenses.
• ⚠️ A second, separate $20,000 loan was taken out without the daughter's knowledge or consent, causing her credit score to drop.

Unconsented Debt and Family Conflict

• 💔 The daughter discovered the second loan through a credit score alert, as she had no other debt.
• 🗣️ She has not discussed the loans with her mother due to strained relations, especially after her parents' recent divorce.
• 🏦 The mother allegedly lied to the father about paying the loans, though no payments have been made.

Options for Addressing the Fraudulent Loan

• ⚖️ Option 1: Report Identity Theft: This involves contacting the loan servicing company, filing a police report, and officially reporting her mother for fraud.
• 💸 Option 2: Pay the Debt: The daughter could accept responsibility and pay off the $21,000+ debt, despite not signing for it.
• ❓ The speaker emphasizes that the daughter is not legally liable for a debt she did not sign for, unless she has a forgotten signature or a power of attorney was involved.

Setting Boundaries and Future Prevention

• 🚫 The speaker advises the daughter to have a firm conversation with her mother, clearly stating that any future use of her name for borrowing will result in legal action.
• 💰 The cost of dealing with this family dysfunction is estimated at $21,000 if the daughter chooses to pay the debt.
• 🚨 The situation highlights a pattern of concerning behavior, with the speaker comparing it to extreme cases of identity theft involving minors.