I would make absolutely clear to your daughter that she should not feel bad and she should not have to go to extreme lengths to hide her happiness at her situation. She can make attempts to not go overboard, but she is absolutely allowed to be happy, display her letters, all that. The roommate will either come around or not and your daughter is not going to be able to help that. I'm sorry the roommate is raining on your daughter's parade.
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"Traveling - It leaves you speechless, then turns you into a storyteller. ~ Ibn Battuta
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