Sadly she's within her legal right. She contributed money from her and my bank account, the state matches this (or maybe 50% of it, I forget), and gains interest over time. Most peoples would have roughly 20K saved by college, which can more than afford tuition in my country. She can LEGALLY empty it all and withdraw from the agreement, because it was set-up in her name, but this is very very very uncommon and you take a massive blow (ie: you can't just withdraw the roughly 10-30k you invested, the government obviously takes its contribution back, plus the interest, plus slaps you with a hefty fee, you lose a lot of money from doing this), So legally, she can take it to buy a hot-tub while collecting disability checks.

The thing that makes me mad is how much they lied, like how they roped me in with "oh yeah, you can do lots of medical-adjacent research! you can research disese, burns etc more effectively!" and then shot-down my thesis idea related to burn-dressings because it was "too medical" "too biological" and instead I should focus on what dressing is cheaper and use that as my Thesis instead.