Ruined Credit and Moving Back into a Nest

My husband and I both graduated from college within the last 3-4 years.We have previously discussed our student loans and agreed that we would pay off our own loans. We're fairly young and have a toddler who we're starting a life insurance/college fund plan for. Recently, we began developing a plan to pay off all our debts (student loans and car loans, we have no credit cards). When I pulled our credit reports, I was startled to find out that my husband had way more student loans than he initially reported (he received pell grants and VA benefits in college bc he's from a lic household and his dad is a disabled veteran). In his first year of college, his mom took out more than 30 grand in private college loans, he had no idea until he looked at his credit report after graduation. He never received a refund check or any additional funds outside of workstudy. We also noticed that there were two accounts that have recently gone into collections, neither of w hich he had any involvement. He contacted his mother who revealed that she took out a credit card and a utility bill in his name while in college. At this point she's not financially able to pay them back and we are not either. We are a young couple, with a daughter, my husband's credit has been ruined and he has over $100,000 worth of debt due to trusting his mom to take care of his college finances. At this point I have no idea what to do. I feel like our fiscal future is in ruins and I feel horrible that I brought a child into such an awful situation. I also tanked my own credit by co-signing on his car loan because we needed a new car (well it's used) because we work in two different cities. He's afraid to prosecute his mom because he doesn't want her to go to jail and I love him, but this is enough to make me want to leave. We've cut most of our luxury expenses and even though I make a great salary, we're not able to enjoy it because of his/his mom's financial irrespons ibility. I know that marriage is not supposed to be about me, but I just hate that my daughter will have to suffer from this if it doesn't get fixed. We've considered moving in with relatives to cut down on monthly rent (we'll still pay them to live there of course), but as a parent with a child I'm not sure if this is really feasible or desirable. Any advice?

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