Unauthorized loan

[kadparalegal]

Im not even sure if this is the correct place to post, but here goes. My son attended ITT Tech for almost 2 years, he withdrew and Sallie Mae is now trying to collect on a student loan that Sallie Mae says my husband co-signed for. My husband and son both told the financial aid person that my husband would not co-sign for a loan. When we got the paperwork my husbands name is typewritten on the form. My husband did not give his consent to be put on as a co-signer. Has anyone else had this experience with ITT Tech, I feel it could be fraud. A year later we got a refusal for another loan , again that we never applied for or gave ITT Tech consent via our signature on any paperwork. Now Sallie Mae collection service has reported us for non-payment for a loan that they say is late, even though my son has started to repay the loan.
Can someone tell me if there is some legal action against ITT Tech for fraud that has to do with student loans? We are talking to an attorney now about how to proceed.
Thank You
KAD

[kadparalegal]

Hi,
Both my son and we his parents are being ruined by ITT Tech. We are being held responsible for a student loan that Sallie Mae has told us that we co-signed for, problem is we never co-signed for a loan for my son and in fact was very explicit with ITT Tech financial aid person that we would not co-sing for a loan at that point or any time in the future, a year later we got a rejection letter with MY name added to the loan application, again an application we never saw or authorized. Has anyone else had this experience and how did you resolve it with Sallie Mae?

[kadparalegal]

Hi Everyone, I have posted this on two other Threads...
My son attended almost 2 years at ITT Tech, and we just recently got wind that my husband (his parents) was added as a co-signer to a loan without his consent or authorization by someone at ITT Tech. During that time of my son attending ITT Tech we were moving and had a PO box, when we got wind that Sallie Mae had notifed the credit bureau that the loan was in default, we started going through back papers and found a notice from a year ago that we had been refused for a second loan, again a loan we never applied for or authorized or consented to via ITT Tech. Has anyone else had this happen? How did you resolve this? We have talked to an attorney in hopes of salvaging our credit and our sons.
Thank You KAD

[Seven ALive]

Ok first off welcome to the site, your 3 posts are identical and none of them were in the right section. The reason why your posts were not showing up is because you need to be approved by a moderator. Now that your approved, your posts will no longer be held for approval.

Your post should have been in a new topic under the financial aid section, which i have done for you. So please use discretion next time.

Now about your situation: I am assuming he was not present at all financial aid meetings your son had. Every year they do a "repack" where they obtain more loans, so you have to find out which loan it is and the date it was taken out. Most likely your husband was not present at the time.

FAA = Financial Aid Administrator
Now about your situation, your son had a hand in this matter. ITT Tech uses "Smart forms" basically online forms you fill out on their website. In order to take out any loans in your name, he would need your information such as your social security number. Unfortunately he electronically signed them for you and the FA at the school allowed it. Was it illegal, yes it was, however be prepared that unless you prosecute your son, nothing can be done.

I actually e-signed for my parents and the FAA allowed it. You just need access to your parents email account, or create one for them. Then just click a few boxes and fill out a name and you electronically signed it. However note i did not have my parents co-sign anything at all.

Now i am refraining from calling your son a liar, but he received copies of the papers and HE was the one to electronically sign. In theory the FAA could do this, however would they go through the trouble of creating an email account and verifying. Most likely not, this either way the loans are government backed and usually don't need a co-signer. Your son whether he realizes what he did, did e sign the loans for you and i am confident the FAA who handled his application knew. Now this doesn't mean that this FA knew you didn't want to cosign. In order to secure any government grant or loan you need your parents tax information if your under 25, that's the law (stupid yes, but it's the law). So you must of at least given him your tax returns.

I'm afraid your screwed, i don't think they will release you from liability, since his account was delinquent at some point. Your only option is to declare fraud, however you must be willing to prosecute whoever is responsible, and that is your son and it could also be the FAA. Now you could argue the fact that there is no actual hard evidence (such as your signature), but i doubt that will get you far. Best of luck, i would call Sallie Mae ASAP and see what they say.

Here are some screenshots from http://financialaid.itt-tech.edu - this is where the loan applications, FAFSA, and the application for enrollment are filled out and submitted under the supervision of a FAA, however the student fills out all information, the FAA just signs it electronically as well.