My husband and I just found out that when my FIL filled out my husband's student loan applications when he was in college, my FIL took out the maximum amount allowed (about $5,000 over tuition, per semester - about $40,000 in total) and kept the remaining refund after tuition was paid each semester.
I've already told my husband how insane he was for allowing another person to fill out legal documents for him. I am blown away by the stupidity. He was a teenager...
Apparently my FIL has had his address as the primary address for billing for the past 6 years (since we've been out of school and paying on student loans) so we didn't know this loan was in default. I actually didn't even know this loan existed. My husband knew about it but thought it was only $5k or $8k and his parents said they would pay on it for him, so he put it out of his mind.
Fast forward to us expecting our tax refund of about $2k from the state and instead getting a letter stating that our refund is being applied to a $48,000 debt. WTF!? We thought this was a huge mistake but then learned about all of this.
My husband and I just bought a house and this debt didn't show up on any of our credit reports. According to the collection agency this loan has been in default and collecting interest for FIVE years.
I have no hope at all, but is there anything we can do about This? So far the only legal advice we got is that my husband can sue his dad, and that's about it.
I am still in shock.
Apparently I have to include my location. We live in Michigan, USA.
EDIT: Adding a little more information. My in-laws have no assets or money. They rent their home, etc. They just make ends meet. Adding this because some commenters have mentioned that so it might make a difference.
Second EDIT: I love my husband very very much and was basically in shock learning of a sudden $48k debt, so I did flip out a bit. We are both okay, neither of us is mad at the other.
Written By: willy_nillers
Source: http://bit.ly/2InV5qG
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