You do know that since its their student loans, they technically have to pay them, right?

It says WE that means multiple people besides herself

student loans will be in the name of the student, so OP will have to pay it back. OP is basically paying for everyone's gifts. A total dick move on mom's part

Not entirely true. My husband needed $32,000 in student loans and he's only paying for $10,000 of that, the rest are in his parents' name.

There is no money left in there

Actually, there is. Student loans often have a different interest rate, because they are intended for educational use. Depending on what kind of loan those student loans are, purposely over-borrowing for non-educational purposes could be considered fraud.

Everyone gets a bit of a "change check", which I'm pretty sure wouldn't be viewed as fraudulent. Just sayin'

Could be. Theoretically. In reality I worked in a financial aid office at my local community college, and, well there's a certain class of person that has no shame at all in using financial aid for whatever they damned well please. And there's an even lower life-form that will drop all their classes after their re-fund comes through (because fin. aid refunds can be dispersed in cash). We a not legally able to investigate their use of funds. It's a violation of privacy. "Well I better get my check soon, I need 5 grand, me n' my kids are going to Disney World." Litterally, and proud as hell, like "Well at least I'm rewarding my kids."

it's not unusual for parents to apply for the loan on behalf of the student.

My loans have an 11% interest rate, if my parents took the loan they get an 9% one. Thats why parents take out the loans.