Assest brought into the marriage, (as well as inherited money), and NOT COMINGLED with marital assests, remain individual property. So if her insurance settlement, was prior to the marriage and she kept the money separate, then it is her property, not marital property. If it was simply deposited into a joint bank account though, then chances are it is marital property.
As to the student loan debt, was there a written agreement that she would repay the debt with those proceeds. If not, then one of the rules under the "statute of frauds" is that certain agreements MUST BE IN WRITING. One of those agreements is the promise to pay the debts of another person. Now there are possible responsive arguments, such as reliance, but you need to consult a good attorney for that level of anaylsis.
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