There are consumer laws and court decisions about fraud and duress and true meeting of the minds in a contract, if you were not aware of it. This sounds in some respects like it was operated very much like a scam.
I am well aware of it and know that a well written contract is very hard to break. As for duress that will probably not apply to the incessant whining of a child trying to get into a school they cannot afford. Duress is when the grantor does something to coerce the guaranteeor (person signing)into signing. What is it the bank is doing to coerce these undeserving people? What scam makes people sign a paper of their own free will guaranteeing a loan?