Sadly, the only way you ay be able to get this matter fully resolved is to file a police report and have charges brought against the family member who forged your signature. You have to understand that Sallie Mae does not know that your signature was forged. The fact that you won't pursue criminal action, leads them to believe that perhaps your signature was written with your consent. They don't know. I suspect that this is a substantial claim amount, and certainly sitting on your credit report, it will have a negative impact upon you and your ability to borrow money in the future. What about your sister?? You don't say why she is not paying. Sallie Mae student loans are nondischargeable in bankruptcy..... in other words, bankruptcy won't get rid of them.
Answer Applies to: Washington
You have a lawyer, and that is where to go with your questions and desires.
Answer Applies to: Michigan
If you hired a lawyer, he should be handling this for you. If the loan is no longer on your account, then you can follow the normal procedures provided by credit agencies for clearing up these kinds of mistakes. If, however, Sallie Mae continues to assert that you are liable for the loan, then your lawyer should strongly contest this, by obtaining affidavits from your sister making clear that you did not co-sign the loan and were only used as a reference. If your sister won't sign the affidavits (and if I were her lawyer I might advise her not to do so), then you would need to file a police report because in reality, your sister did commit a fraud. If your family wants to avoid the possibility that your sister would be prosecuted, then your family should work together to come up with the money to pay the loan. Unfortunately, there are no short-cuts are easy magical solutions here.
Answer Applies to: New York