My daughter enrolled in a particular university because it had a journalism program. During her second year, they lost the only professor of journalism and attempted to create a combined journalism/communication/media program. They only have a new creative writing instructor heading the "journalism" dept. and have reduced the award-winning school newspaper to an online blog, which at the moment is not even live. There is no adequate faculty to teach the journalism major courses and all of this is on the university's website. Furthermore, they require an internship as part of the program, but when she applied for a study-abroad internship program that the school had introduced, she was told that she would still need to pay the tuition in addition to the external internship program fees.
First, let me give you the "frank" answer. Let's say there is a case here to bring, are you willing to invest $20,000 to $40,000 to do so with no guarantee that you can recover any damages or your attorney fees?
To be fraud (or the legal term, Unfair and Deceptive Trade Practices), the program could not have existed at the time your daughter enrolled. Apparently, they had a journalism program when she started. So, there is no fraud on that point. Also, I assume the school offers other programs. It is not like this school is just an HVAC training school. As such, your daughters intended major at the time she enrolled is not something the school would be held to reasonably foresee or rely upon (college kids change majors like socks). In general, schools do not have express or implied guarantees as to what programs will or won't exist as the student progresses through her education.
As for the credits for internships. That is normal. It would be odd if the school didn't charge tuition for given credits for internships. If a student does an internship, and want's school credit for it, she has to pay tuition for those credits. I don't see anything wrong with that and that is quite common.
The only thing you might have is if your daughter transfers and the bulk of her credits won't transfer. You may have a case there (still a stretch, depends on the circumstances).
Internships generally charge like that. The school provides a monitor to check the program and grade you on it, andyou pay by the credit. If the internship program has other fees, you pay them.
Losing the journalism program is another story. Your recourse is probably to transfer or change majors.
This should not be considered legal advice and is intended for educational purposes only. It does not constitute a contract for legal services between any parties. Answers are given to questions for which there may be additional facts not mentioned which might change the legal issues or consequences.
Years licensed, work experience, education
Peer endorsements, associations, awards
Publications, speaking engagements