RE: the whole bike theft on campus thing....
I went to two schools with lots of bikes and thus lots of bike theft, and I have never had a problem, even with a brand new (albeit not that great) mountain bike. My one suggestion is to get a good lock, ALWAYS lock the bike to something (not just to itself), and make sure that both the front wheel and frame are locked (the front wheel is usually the one with quick release on many entry level bikes). Most bike shops will also sell a cable lock that locks the seat to the seatpost so you don't come out of school and have to seat to sit on! The only bike I wouldn't consider parking outside at school is my road bike, but other ones no problem, especially if she can keep it in her apartment or locked on a balcony instead of just out front overnight.