Legal Question in Credit and Debt Law in North Carolina

You state the Kobayashi Maru (fictional test from Star Trek).

You have two choices - neither of them pleasant. You either submit a fraud affidavit and allow the lender to take whatever action it deems appropriate, including possible criminal charges against your daughter for forgery, or else you accept responsibility for the debt.

There is no third way - the third way was to have her pay the bills. She obviously has so little regard for you or the effect that this has on you and your credit however I can still understand why you have feelings for your daughter despite what she has done. If she is big enough to go and get educated then she is big enough to deal with consequences. Maybe what she needs now is some tough love by you instead of enabling her problems by letting her do as she pleases with no consequences to herself.

I would tell her in no uncertain terms that while you are her parent and will always love her, either she needs to start paying back her debt OR ELSE you will file a police report (you will need this) and submit an affidavit of fraud to the student lender as well as the credit bureaus. If she does not follow through then you must do so and let whatever happens happen. If she goes to jail, its her problem, not yours.