We had a very long talk today and it looks like (for now) that she will be home and trying to work this all out. She understands she has been given an opportunity to get herself on track and hopefully she will take it seriously. She has agreed to work on whatever is wrong and try to fix it. It won't be a quick fix and she knows it, but as long as she is willing to try I am all in.
Dave, sounds like your doing a great job on parenting. Don't take it the wrong way when she ran away or left for that period of time. I was once at that stage where I wanted to run away then realized it wont solve anything. It also sounds like you have a good head on your shoulders, as well as a good knowledge of being a good parent. I like the fact that that you expect the best effort and not to be perfect.
Thats where I believe a lot of parents go wrong. They expect A's in school, they expect their kid to be the best in a sport. Some people just plain can't be that person. As long as you try, like you said, I'd be proud of my kid.