A loan from a friend to the parent is considered an asset if it is unspent at the time the FAFSA is filed. @delaneyal , do not enter your parent asset information on the verification worksheet. Your parent needs to do that. You should enter your own assets, and be honest.
Whatever your parent puts is on your parent. You need to accept that your parent bears responsibility for this information. It is possible you don’t really know their finances. The bottom line is that you are responsible for being honest with what you control, and they are responsible for being honest with what they control.