This is your middle school dd, right? I wonder if part of the reason this is coming up now as an issue and hadn't happened in the past is that she's going through a phase of growing independence or something like that related to her age? If she is, it might be a phase she gets past. I do think it's a reasonable request on her part to want some control and choice over what is and isn't saved, so maybe you could take this as an opportunity to decide together what to save, how to decide what to save (is it all up to her, do you have some say etc), and *where* to save it (I think it's totally reasonable that it all be saved in HER room lol, and that she not be allowed to have her room grow to be a candidate for a TLC show :D).
One idea for her schoolwork (if she really wants to keep it all) is to invest in an inexpensive (I know, that's a relative term!) scanner and let her scan her work in and save it in a folder on a thumb drive or on a computer etc. And then toss the paper! I add that "and then" in because I can see my hoarding-tendency-dd scanning and still wanting to keep the paper somewhere.
polarbear