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FWIW, I think your approach is eminently reasonable. I, too, am the queen of consequences (just ask my DD the reforming spendthrift, who is now at college trying hard to live off of what she saved over the last summer). But the reality is that "consequences" today can be an order of magnitude different from when we were kids. For me, I took on a grand total of $9500 in student loans to cover both college and law school, which qualified me for a job as a baby lawyer that started at $52K (and went up to $57K before I even started). That is a world apart from $120K in loans to qualify for a job that pays that same $52K.
The reality is, sure, we'd have all advised our kids not to pursue a path that requires 3 years' salary just to pay off the loans you needed to get there. But that's water under the bridge. The decision has been made, the loans are there, and the mistake has been realized. So the real question, once you put recriminations aside, is: now what?
In the real world, kids are stupid, and those of us who ended up on a good path did so with a fair helping of good luck along the way. I could have totally screwed up, hated my job, and wanted desperately to quit and do something else -- really, how the hell did I know I'd like practicing law? I did it because I didn't have any better ideas. If I'd hated the job, I'd have needed to suck it up for maybe 18 mos. to get my loans paid off, and then I'd have been completely free. Your daughter has already been working and paying for 18 months and still has six figures left. So the real question is whether you want her to feel the full force and effect of the stupidity of taking out that much debt, even if it sets her a decade behind in her career, or whether you think she's learned the lesson well enough and lift the burden just enough to give her the chance to change course to something that suits her better.
This strikes me very much as the decision between justice and mercy. She made the choice, and she fully deserves to own it and deal with the consequences. But it is also reasonable not to force her to feel the full weight of those consequences over the next two decades when you have the ability to lift just enough of the weight to allow her to move onto a path that will serve her better in the long run.