I don’t read that ruling to say she was denied because she had too much debt. But that she incurred that debt with no thought or consideration how that debt would be repaid (and really an expectation that it would not be repaid). And that she abused the judicial system on multiple occasions. Did not display the character and fitness (I went through one of those exams in Ohio decades ago) required to sit for the Ohio bar exam.
Generally speaking Ohio (and I think other states as well but no first hand experience) believe in second chances (definitely applies in disciplinary actions with attorneys). Let her come back in 5 years and show how she has changed. Is she taking the debt more seriously and making efforts to repay it. Maybe she can spend time talking to other students (law students and undergrads) about debt levels and impacts of them. Respect the legal system over that time period. Get involved in legit legal matters.
Student loan debt was dischargeable prior to 2006 but in my experience it was more theoretical than real. Prior to the enactment of the bankruptcy code (in 1978 I believe), student loan debts were dischargeable. But over time, limits were put on them. Working for a bankruptcy court in the 90s, the undue hardship test was pretty much impossible to establish.
But I think you have to be careful what you wish for. Make student loan debts dischargeable and they will be harder to obtain which will make college/grad school much less likely for lower SES kids.