Texas woman thinks her mom took out a $20K loan in her name without permission. Dave Ramsey offers her 2 ‘ugly’ options

A 23-year-old woman from Houston says she was blindsided when she discovered a $20,000 student loan had been taken out in her name without her knowledge — and she believes her mother may be responsible.

Amanda called into The Ramsey Show seeking advice, saying she learned about the loan only after receiving a credit alert from her bank showing her score had dropped because the debt had accrued interest (1). Until then, she wasn’t aware she had a credit history.

“I didn’t even know I had a credit score,” she told co-hosts Dave Ramsey and Jade Warshaw in a clip posted Jan. 16. “I have no other debt.”

Now a teacher earning about $48,000 a year, plus a small stipend, Amanda said the mystery loan was taken out during her final year of college, roughly two years ago. She had agreed to an initial $20,000 loan that covered tuition, but said a second $20,000 loan suddenly appeared that far exceeded any reasonable education or living expenses, which were being paid for by mom.

“There’s no way my living expenses were $20,000,” she said. “The only thing she was paying was my rent for a shared place with 10 girls.”

She has not confronted her mother directly about the loan. Her parents recently divorced, and she believes any conversation would likely lead to denial or emotional manipulation rather than clarity. But through communication with her dad, it seems Amanda’s mom may have been aware of the loan and claimed to have been paying it off. Amanda thinks otherwise.

Ramsey told Amanda she effectively has two paths forward — and “neither one of them are pretty.”

One option is to report the loan as identity theft by contacting the loan servicer and filing formal documentation, including a police report, even though the alleged perpetrator is her mother.

“The second option is equally as ugly: shut up and pay it,” Ramsey said bluntly. “I don’t like either one of them.”

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Taking out a loan in someone else’s name without authorization is identity theft, even when the person responsible is a parent.

Identity theft can be reported through Federal Student Aid and the Federal Trade Commission at IdentityTheft.gov.

But before reporting something as identity theft, as Ramsey warned, you should be absolutely certain that’s the case. Amanda displayed gaps in her memory throughout the call. She may want to get in touch with the creditor first to confirm it’s not her signature on the paperwork.

Lasting loan debt can have lasting financial consequences such as:

• Credit damage and collections: Delinquent or defaulted student loans can harm credit scores and trigger collection activity.

• Delayed life milestones: Poor credit can make it harder to rent an apartment, qualify for a mortgage or secure affordable insurance.

• Higher long-term costs: Negative marks can remain on a credit report for years, raising borrowing costs even after the balance is resolved.

• Aggressive enforcement: In some cases, wage garnishment, tax refund offsets and persistent collection efforts can follow borrowers.

Family-related financial fraud can be especially brutal. Since parents often have access to their children’s Social Security numbers and personal documents, fraud can go undetected for years. When the fraud is discovered, interest may have accrued, repayment timelines may be underway and correcting the record can become more complicated and emotionally taxing.

As painful as the decision may be, ignoring a fraudulent loan doesn’t make it go away. It simply allows the damage to be compounded. That’s why it’s a good idea for anyone facing this situation to investigate what’s happened and come up with a solution, whether it involves the authorities or not.

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