The ED component adds a layer of complexity and commitment for sure. Does your daughter communicate well with you? Will she be open and honest if she is struggling academically, socially, or with her mental health?
Hopefully she does pursue other avenues if she wants to, but I would encourage her to stretch. Give her the opportunity to rise to the occasion, and if it is too overwhelming, she can step back from that…IF that would be reasonable in her mind. ie will she feel “worse” if she has to step away?
The inverse that carpathia mentions above is also a good idea. Start a little safer and then the option to transfer.