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They do, state owned education
Education is also a privilege. And universities should have no power to block people from leaving a country. It is like Emirates preventing people to go home, because of unpaid speeding tickets. Or Qatar confiscating passports of Indian workers.

> Passport Blocks: Arrears exceeding €5,000 can result in registration in the passport alert system, making it impossible to receive a new passport,

I would say that is pretty serious violation of human rights, for relatively small infraction. Soviet countries used similar system to prevent people from leaving their communist paradise.

How are you supposed to pay your debt, if you are not allowed to find new job abroad?!