Legal Question in Credit and Debt Law in Virginia

Duplicate question already answered.

This would not be a defense to the claim of the lender. If your agreement with the student was, in consideration of your co-signing, that it be used for school and the student diverted it to other uses, that would give you a claim against the student (not conversion, but fraud), in addition to the subrogation or indemnity claim that you already would have.

It MAY give you (or the student) a basis to assert that it falls outside the non-dischargeability provisions of the bankruptcy code for private student loans, if either of you were to try to discharge it in bankruptcy.