Ahoy there!
What a story! Excellent story and plot design. I enjoyed the haunting conclusion.
I am also impressed that you used Unreal for this. I am only starting to learn Unreal and I think you must be quite skilled to pull this off so nicely.
I thought the music was spot on, especially the menu music, with the tracks fitting the theme and the story very well.
I loved the hand-drawn character sprites, my first impression was that they were very cute and varied from each other. I think that Nova SWARM's suggestion of adding a black outline is very good.
My favourite background was the background of the school with the candles glowing in an eerie green light. Transition effects between backgrounds will help smooth the gameplay experience when we enter a new scene.
One important note, is the white flash is a little fast/sudden for me to handle, and could be possibly triggering for someone with epilepsy.
I hope you and the team enjoy continuing this project after the jam!
All the best,
Ocelot.