ETA
After thinking about this more I want to know what anxiety meds she is taking because if she's not being medicated it's your fault she's going through this. If she's taking meds and still getting this worked up she needs to see the psychiatrist for a med eval. If she's seeing the pediatrician for meds then she needs to make an appointment with a doctor who treats mental health issues.
AND you truly sound like the book she is reading to see how she should feel about stuff. You don't like testing and you don't like this school. She's picking up on that and showing her by your actions and what you say and she'd reacting to that.
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I have never thought it wise to do that. I have had some issues with testing in one subject. Everything else was okay but that one subject....I can flat out sit and cry, as an adult, if confronted with a question. I see blank space and my mind goes blank and there is nothing I can do about it.
I got tested for learning disabilities and I was okay. She said that I didn't have a specific glitch but that I had learned Math so differently that my math skills were carved in stone in my brain in great big deep ruts, so deep learning higher math was impossible for me.
So I'd sit in beginning algebra, a mother of an elementary school age child, and start crying because it was like trying to read a foreign language that has symbols that I didn't know.
As I worked with a special tutor I started to have teeny tiny light bulb moments where something would make sense. BUT I had nowhere for it to mesh up in my math stuff so what I was learning went into short term memory and was gone a few weeks later. Talk about frustrating.
I got open book tests, untimed tests so I got to go sit in an empty office all day if I needed to, and more. I still flunked it several times before the special tutor. I passed beginning algebra with a B. I have no idea what I did to pass the class because when I look at it now I have no idea what to do with even a simple simple algebra problem.
In this situation I truly have no idea what I'd do. I hated taking math tests and would make myself sick because anticipating the test was waaaayyy worse than the test itself.
I'd ask the psychologist what to do. I'd likely just tell her to press onward and do her best. She's right at being a teen and she needs to know that fear and crying won't get her out of life. She's afraid of growing up...life is part of growing up. So I'd not let her off the hook. What would she do for the rest of the year if they're focusing on the tests coming up? Sit quietly at her desk? Sleep all day? Stay home and watch TV? Seriously, what would she be doing if she isn't doing what her whole school is doing?
Having gone through testing in difficult situations and panic disorder/anxiety disorder, and many other school/college situations with similar issues I can say that by just going and doing it I got used to the stress and fear then it had no power over me. I still felt afraid and stressed but it didn't rule my life.
I guess what I'm thinking is that if she doesn't confront her fears while she is young and overcome them she isn't going to go to college, they give tests there and if you don't pass the tests you flunk out. It doesn't matter if you are afraid and stressed out. Even if you have a medical situation that grants you special treatment....you STILL have to take the tests and pass them or you don't pass the class.
Letting her get by and not testing is not a positive step. There may be other things they can do but she needs to confront her fears and take the tests.
I'm going to tell you what happened to me when hubby and I were in Dallas one time, going to the Dallas LDS Temple. We got stuck in horrible traffic and I panicked. I had an unbelievable all out panic attack from being stuck in traffic. I was trapped and couldn't get out and had to get out and couldn't get out OMG!!!
I started yelling at my husband to get me out of traffic and I was crying and shaking and more. He couldn't go anywhere so he yelled back at me to STOP IT! I was going to make us have an accident and get hurt. So STOP IT NOW!
I did and was almost instantly calm. I was still stressed out but I wasn't afraid anymore.
I was able to work through my anxiety/panic stuff and over time I was able to function pretty normally. I still don't speak in public in a situation where I'm stuck in front of people in a stage or platform because I am literally trapped up there and can't just get up and walk away...
So I suggest you talk to the psychologist. I think she needs to do the testing so she can get over her fear, to confront her fear, but your psychologist talks to her and knows what the outcome might be much better than I would.