They shredded her wallet

My sister lost her wallet a few months back. She looked everywhere and couldnt find it. Got no calls. Well today she logged onto her old student account (she dropped out of college) and had an email from the school saying they had her wallet. They didnt call her or even email her main email, only her school one. So she calls and they say they Shredded everything in the wallet and threw the wallet away. She had $50 in there, her ID, credit card and a bunch of other stuff. I dont even think that is legal?! What can she do because they cant just take her $50 and should have to reimburse her for shredding her stuff.

Edit:

Her school email was NOT the only email they had on file for her. They had her main email, her phone number AND her address.