Your granddaughter probably forged your name and submitted the paperwork. That would explain how she got the loan without you signing anything.
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I agree. It seems that either the school did something wrong, or your granddaughter did. If you did not sign for the debt, then you should not be held responsible, but you may want to question your granddaughter before taking other steps.
Anastatia Quirk Ellis, Esq. is licensed to practice law in Florida, Massachusetts and U.S. Tax Court, This answer is provided as general information and does not initiate an attorney-client relationship.