It sounds like it is your gf's personal iPad, but she also brings it to school for business use.
Let me ask another question: If she accidentally breaks the iPad (doesn't matter if it is on premise or off), who will be responsible for a replacement? It is her personal iPad, but it also also being used for work purposes.
Another example - if you go to work and accidentally rips your shirt, does your employer responsible to buy you a new shirt because it was torn during work?
It is hard to say. Your girlfriend may have to bring it up with the school officials and find a common ground. If the school says it's not their problem, then you have to chalk it up as a lesson learned....
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