Well, I hate to say it, but it sounds like a scam by the college itself to sell an insurance premium. In your post, you said that the college letter stated "your ssn... may have be compromised". In other words, they are not saying that they DID compromise her numbers, only that it COULD have happened. Plenty of room here for lawyers to wriggle with. I know I have a dirty mind, but colleges have been seeking new avenues of revenue for a few years now, including "college" credit cards, handed out like candy to incoming freshmen. Of course, the card is a name brand card with the college logo on it, and the college gets a small percentage of the profit. I'm willing to bet this is the same thing. Selling identity insurance with the college getting a small percentage of the premium payment. Bu all means, look into it. But I'd be willing to bet that if you tracked this down to the college official who is in charge of this, (And held their feet to the fire) he/she would quickly look into their records and THEN assure you that your numbers weren't compromised after all. If I'm right, I'd sure like to know later, as I have some relatives in the same college system.
