Um... go to the police about it! The only problem is, she is only the guarantour of the loan, which means that if you couldn't pay, she would have to.

Unless you have any legal contracts between you and your cousin stating that the monet was for her, it is more or less your word against hers, the loan is in your name, even though the money was given to her.

You are responsible unless there is any legal documentation showing the agreement between you and your cousing. Why did she come to you? Why couldn't the loan be made out in her name? Why couldn't her husband help?

Hope this doesn't sound too rude or condescending... If it does, I'm sorry.