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I am not sure if there is currently a good solution for this since a chrooted user would not have access to /etc/passwd /etc/shadow to be able to update passwords even if you add the passwd utility to their path. If the only need for ssh is for password changes, using ssh-keys would be a more secure option or you could set up something like webmin/usermin which can be restricted to allow users to perform password changes via a web interface.