From 24/7 Wall St. · Jake FitzGerald · · 1m 10s
Dave Ramsey on Student Loan Identity Theft
Grad student pays $28k loans then finds $39k more in her name.
In brief
Grad student pays $28k loans then finds $39k more in her name. Alex paid off $28k student loans in 13 months but discovered $39k in loans she never signed, risking 18 months of debt payments. Originally reported by 24/7 Wall St..
Alex's Loan Situation
Alex paid off $28,000 student loans in 13 months but discovered $39,000 in loans she never signed.
“I cannot think of a worse form of child abuse. Anybody that would do this to their own kid cannot be trusted. This is horrible.”
Credit Report Findings
Her credit report showed $19,500 in loans solely in her name and $19,500 jointly with her mother.
Joint Liability Risk
Alex is responsible for the full $39,000 on joint loans, not just her half.
Interest Impact
At an example interest rate, $39,000 could build $2,730 in interest annually.
Credit Freeze Advice
Ramsey advised freezing credit with all three bureaus to prevent further fraud.
“freeze your credit with all three bureaus”
Dispute Options
She can dispute sole-name loans to reduce debt to $19,500 or pay full $39,000.
Similar Case
A man found his 3-month-old child's Social Security number on a credit card in his wife's name.
Next Steps
Alex should run credit reports, freeze credit, and sort unfamiliar loans by name.
The takeaway
Alex paid off $28k student loans in 13 months but discovered $39k in loans she never signed, risking 18 months of debt payments.
