I do not recommend an art school or engineering-oriented school, she will need an environment that fosters the entire product design process, with good facilities for research, concept development and prototyping.
It’s great that she already knows she wants to be a toy designer, and she should hold on to this striving, but I recommend doing an ID program over a Toy Design program because she will take in knowledge, skills (for example electronics, interaction design) and creative solutions from other disciplines which will make her a more interesting designer with in my view a more interesting portfolio.