I cosigned for a student loan where a father helped take it out for his daughter. Then the father who was making the payments stopped and the loan company (AES) came after me to take up the payments. I have since found out that the loan was taken out by fraud when I asked the daughter about it and she had no idea the father had done this on her behalf and never saw any of the funds. She was also able to confirm that the signature on the original paperwork was not hers. I am hoping there may be some way that I would not have to continue to pay since I would have never signed if I knew about the father taking the money for other uses (was before funds had to be paid to the educational institution). ANY help would be appreciated since I am really in a bad spot here.
1 Answer from Attorneys
First of all, one NEVER EVER should cosign anything one does not expect to pay. Lenders ask for cosigners because, lookingat a person's finances, they know the person probably can't pay and you can.
If the fraud statement is true, you will need to pay a lawyer to properly raise a defense. That is likely to be expensive. It may or may not succeed. But this is not a defense you will win pro se. The fraud may or may not be a successful defense, but since it's your only hope, invest in a lawyer to try.