IANAL
But isn’t it basic contract law that you’re not responsible for payment when the other party to your contract has acted fraudulently?
The situation of student debt complicates the situation because the person who was paying money for the bogus education payed for it with borrowed funds.
I don’t know the legalities of this, but is there not a way the student can just point the lender at the bogus educational institution and say “you guys work it out, I’m done with this.” 
