My impression isn’t so much that your daughter is paralyzed by fear as that she is overwhelmed by choices that she doesn’t have the knowledge or exposure to differentiate between.
Different kids have different reactions to the college search and application process. Some seem born knowing what to do and handle it fairly independently. Some need a good deal of help in narrowing in on a suitable, affordable list and in filling out the various elements of the application. You may have to provide more guidance on establishing an application foundation – e.g., clarifying finances, learning about the different types of schools, assembling application materials and calendars – than you might want to. To me this isn’t imposing, it’s just parenting in today’s complicated world of higher education.
The first step is to clarify the financial element. In addition to knowing how much you can afford, you need to have a rough idea of how much the colleges are likely to expect you to pay. It’s better for you to take the initiative here, then share your findings with your daughter.
Choose a few colleges – don’t worry at this point whether your daughter is enthusiastic about them or not – and run a few of their net price calculators (which you will find on the colleges’ websites). The NPCs will give you a general indication of how much need-based aid your family may be eligible for. If your estimated family contribution matches the amount that you can afford to pay, then good, your daughter can put together a fairly open ended list.
If, on the other hand, the NPCs indicate that need-based aid won’t be enough, then you’ll need to help your daughter search for colleges that offer merit aid. Again, I think it’s reasonable for you, the parents, to take the lead on identifying  colleges that offer merit aid. This site is a wealth of knowledge on the topic.
I wouldn’t stress too much over majors and/or careers. Many, many kids start their first year of college not knowing what they will major in, let alone what they will do after they graduate. For most kids majors and career paths develop over time as they sample different academic areas, hold summer jobs and internships, get exposure through teachers and fellow students. Let the choice of major go for now and concentrate on putting together a list of schools that you can afford and that might appeal to your daughter.
So, how to get your daughter to communicate what appeals to her? Does her high school have a college counselor who could help assemble a list of schools? Barring that, is there a teacher that she’s close to who could offer suggestions. Are you friendly with the parents of any of your daughter’s friends? Perhaps they could point you in the right direction for helpful people at her school.
At most colleges she will have to submit 2 letters of recommendation from teachers who know her as well a general letter from the high school. If she hasn’t begun that process, then perhaps you should get involved to find out what’s available at her school. She will also usually have to submit one or more essays that provide a window into her interests and background. Teachers can be helpful as essay advisors too.
Lastly, has your daughter had the opportunity to visit colleges? To me, this is the best way to generate enthusiasm. If you haven’t already done so, visit a few different colleges in your area – big State universities, medium and small sized privates. The concept of college can be abstract and a few visits can help provide context.