In-state, I second Geneseo and New Paltz as good fits (and perhaps Binghamton and Albany, with Honors application if possible, for a more personalized feel; “scholars” at Bing get the best scholarships but it’s highly selective and by invitation only, but the Source is by application; honors at Albany is by invitation but you can indicate your interest by communicating with the HOnors college). With these 4 she’s covered for affordable colleges that are low matches (not full safeties but close - I’m willing to bet she’ll get into 3 of them if not all of them, but definitely at least one.)
I wouldn’t recommend CUNYs if you don’t live in the city, they’re 99% commuter and while there’s a dorm most students have a job and live with their family, so it’s efficient and inexpensive but not the experience you’re describing as what she wishes for.
135K for 5 and medical debt would get financial aid at many “meet need” colleges but perhaps not to 10K+ federal loan level, so run the NPCs on all the colleges listed.
W&L is the opposite of “hippie”.
Denison is an obvious one, it meets all criteria except for “hippie vibe”.
Mount Holyoke, Skidmore, Macalester, Dickinson, Bates, may work, too. (reaches but excellent FA)
St Olaf if she’s interested in the Conversations programs (there are several seminars, reading/writing based). Not “hippie” but “musical” so might appeal to her. Meets need and has merit for music as well as for academics. Interest matters.
Muhlenberg has excellent theater.
Kalamazoo, Knox, Eckerd, would be other options to explore. They offer both need and merit. Worth trying, in case they come within budget.