Legal Question in Family Law in Virginia
Question: Can a parent (cosigner) be held responsible for private student loan repayment if they took the loan money without primary signer�s permission or knowledge and used it to pay for entertainment and general/housing expenses incurred by the whole family? Also, can the parents claim they took the money as reimbursement for paying for child�s college expenses previously and not be held responsible?
The story: Child is primary signer on private student loan, parents cosigned. Child claims they did not know they were the primary signer on loan. All is hear-say besides original signed private loan contract. Parents stated they would make payments on loan and are now backing out of the promise. Furthermore only $2 grand was actually used for tuition and books, the remaining student loan amount was taken by the parents to pay for entertainment and housing/general expenses incurred by the whole family. The money was taken without the child�s (primary) signer�s permission. The parents now claim that the money was their reimbursement of the college expenses they already paid for the child. Do the parents have any legal responsibility to repay the loan, can any action be taken against them since the money was taken without primary signer�s permission and used for entertainment and housing/general expenses for the whole family? Would any legal responsibility be upheld if parents are claiming loan was their reimbursement?
1 Answer from Attorneys
Both the child and the cosigning parent(s) are likely responsible, respectively,
for repaying this private student loan and under the applicable law would most likely be considered JOINTLY AND SEVERALLY LIABLE, meaning in case of any default, the lender can go after either or both for purposes of enforcement.
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