Actually no she was not... that stayed on her credit report for years and mine stayed clean.
OK, my bad, it seems I was lost in translation (which is kind of embarrasing considering my signature
). Anyway, in this case the situation is even worse written, as a co-signer is not allowed to dispose the money of the loan, which is what Maya says her dad is doing by withholding the funds (or threating her to do so) instead of paying the university fees. I mean, sticking with your example, the bank lend some money to your daughter, putting it in her account, or more probably just wrote a check for the car's seller so she never was in actual possesion of that money, as the loan was signed to finance that buy/sell operation. And obviously you never had any power in how that money was moved from the bank to its destination, and neither could you have stopped the whole operation after you signed as co-signer.
More explanations about how financials work in game's world are needed, considering an Economics student (Josy) doesn't seem to see anything wrong in daddy's evil plan. Of course all this could be just a huge bullshit due to the naivety and inexperience of the three characters involved (MC, Josy and Maya) and the threat would be easily dismantled after asking for an adult's help, but... well, you know.