I would discourage her from taking more loans than just the Stafford. Did she get work-study from UVM? If not, can she work? Run the numbers for her on repaying the loans, which may help her reconsider. While she MAY be able to make money during the summer, it is not all that easy to earn $4K in a summer and still have spending money. Do the costs you are quoting include books, transportation, and “fun”?
Is there something other than location and size that makes UVM her first choice?
What do you mean by medical lab science? Does she want to go to Med School or nursing or something else? That might impact her choices.