Your daughter can NOT file as "not your dependent". Scholarships/grants are not self support. They are third party support. You appear to be using the terms loans and grants interchangeably. They are not the same. Loans that you didn't co-sign are self support for your daughter. Does U of M give her credit for the courses taken in Spain? If so, I don't think it's clear cut that the study abroad was not eligible (accredited).
