That person clearly is not a victim of the school, rather that person is the victim of a predatory loan.

Just think about it. A degree doesn't have to cost $300000 but the bank financed it anyway, with the clear intention of working that person down to their bones. Why would a bank let someone take a debt that takes 10 years of work to repay? Because they want to force that person to work for 10 years. If the law were sane the debtor would default as soon as possible.