While this may seem very bad, there is really nothing wrong with it. The same exact scenario happened to my friend K. Now, her parents had discussed with her for years what would happen as her sibling all received similar treatment, but to others it may have looked bad. At the age of 18, K was out of her home and sent to college. She was given a bank account with enough money to get her through 4 years of college if she budgetted well. She was told there was only that bank account and she could not move home again. The sibling closest in age to her was 12 years older and she was the youngest of 4.
Her parents didn't even drop her off at college! College was 2 states away, she had no car, they set her on a plane and said 'figure it out'!.
She survived! She went to college, became an RA to get free room and board for a couple years before her and I became roomies. She had enough $$ to have a little fun but she had to budget her money.
After her undergrad she managed to maintain a job and get her Masters Degree without any support at all. She isn't scarred for life and still has a great relationship with her parents. Some may think it mean but at the age of 18 a child needs to learn to be an adult.
My parents financially supported me through college but made it very clear that I would *never* move back home. Heck, while I was a camp counselor during the summer after HS graduation I received a letter 4 weeks into camp informing me of my parents new home address!

I had no clue they were moving! The new home is in a retirement community with no room for any of the kiddos to come home.
I was lucky that my parents continued financial support while I was in college. I did have a job for extra spending money. I had many friends who had to pay their own way and all of them were OK. It is what ya do! Everyone goes through a couple of poor years, or rough years, but it helps you realize what it is like to be an adult.
Some kids just seem to have the idea that the should never have a tight time. That they should just pick up financially where their parents left off. It is a harsh slap in the face for them to realize otherwise.