For FAFSA purposes, your financial information is required regardless if you claim her or don't. In the federal government’s eyes, parents are responsible for their children’s’ education, regardless of whether or not the parents can actually pay.
The following are the only ways she can be a independent student and not include parental information on the FAFSA form:
Be 24 years of age or older by December 31 of the award year;
Be an orphan (both parents deceased), ward of the court, in foster
care or was a ward of the court when 13 years or older;
Be a veteran of the Armed Forces of the United States or serving on
active duty for other than training purposes;
Be a graduate or professional student;
Be a married individual;
Have legal dependents other than a spouse;
Be an emancipated minor or in legal guardianship;
Be a homeless youth;
Be a student for whom a financial aid administrator makes a documented determination of independence by reason of other unusual circumstances.
I'm not sure what college she is attending, but there is no shame or harm in attending a community college first and then transferring. I did that and ended up saving a lot of money. After graduating, I am in a better place than some of my peers who went to a private 4 year college and graduated with debt.