As long as your daughter is allowed more than one device on the network, the TimeCapsule can join the net just like an iPod Touch or her Mac can.
Just as her mac needs to be secured, her TimeCapsule needs a good password, but there is nothing inherently wrong about backing up to "her" Time Capsule using another WiFi network in between her mac and her capsule.
She should have an ethernet cable to speed things up if she has a large backup or restore. Unless the network is locked down with 802.1x or some web client for authentication, she will have no problems.
There are ways to get around those issues, but it's a bit of a pain and not likely to be an issue either.
And of course - If she gets an ethernet drop in the room, she can secure things much better. Her mac can be set to prefer her room's WiFi connection created from her TimeCapsule and she will get the benefit of less access to her TimeCapsule disk (only people she shares her WiFi password with can even see the volume) as well as possibly faster backups and internet access since her Mac to TimeCapsule throughput may very well be significantly faster than the WiFi throughput in her room to the nearest campus base station. It's likely there will be less other traffic on her private WiFi network as well so this is a superior option for the reasons listed.