J.L.
I agree that Ikea is great for dorm stuff. You could give her a gift certificate and offer to take her shopping there so she can spend it (then she knows what you are wiling to spend before you go there.) You could even tell her mom your thoughts and see if her mom is also giving money for stuff.
At Ikea, one of the great things are their conforters and duvet covers. That is good for a dorm since you would only need to wash the duvet cover instead of always having to wash the whole thing if she spill "pop" or "juice" on it!!! Also, foldable laundry baskets, sheets, or bags make great gifts.
You could also go with a college sweatshirt, t-shirt, or other clothing with MSU on the front. Those sweatshirts can be a bit pricy, but they are nice.