A 3.4 is on the low side, but she can overcome that by getting solid research experience (including perhaps two years after college to get more). Plus if she’s a sophomore she has some time to bring her GPA up. FWIW I had a 3.4 when graduating from college and got into a top 20 social psychology PhD program, which is almost as competitive as clinical (but not quite).
Job prospects for clinical psychologists are good, and as long as she gets a degree from an APA-accredited program I’m not sure that people make a distinction between PsyD and PhD in clinical practice anymore. This is especially true if she goes to a well-reputed PsyD program. Where a difference will come in is if she decides that she wants to teach. A PsyD could probably adjunct classes but not be competitive in seeking a position as a tenure-track academic or researcher. However, if she doesn’t want to do research then this is probably a moot point anyway.
Most PsyD programs are not funded, and students are expected to pay (out of pocket or with loans), much as they would for medical school. Some PsyD programs award assistantships to a few students to help them pay. One exception that I know of is James Madison’s combined-integrated PsyD program, which prepares students for licensure in both school and clinical psychology; this program fully funds all of their students for 3 years of tuition. During their internship year, they just pay for one credit each semester, which is about $2,200 total for an OOS student.
PsyD programs usually take 4 years - 3 years of coursework and 1 year of internship. Because they tend to be more structured in terms of classwork and requirements, and dissertations tend to be less onerous, I think PsyD students do finish in 4 years most of the time (sometimes 5, I suppose). There’s a broadsheet somewhere with students’ licensure rates and APA-accredited internship rates; it might be on the APA website, but I don’t remember where I saw it.
For PsyD programs, getting clinical volunteer experience is probably good - so volunteering in a hospital, clinic, or private practice with a currently practicing psychologist or other mental health clinician, or on a psychiatric ward. PsyD students do need to be able to consume research (rather than produce it) so that they stay up to date in their practice on the latest techniques and problems, so assisting a professor in research can only help. Most students take the GRE some time between March of their junior year and November of their senior year; the summer is a good time, since you can retake if you don’t like your scores. Some programs require the Psychology GRE and some don’t; she should check individual websites of the programs to see if they do. I don’t think there is a typical student; it really depends on the program. The James Madison program says it’s designed for people who already have a graduate degree in mental health and who want to continue their education. Some other PsyD programs might be set up that way. I think they take students from a variety of backgrounds.
Also, FWIW, I studied abroad in college and continued my research when I was abroad, because I knew I wanted to do a PhD. So your daughter might seek out ways to continue her volunteering or research abroad - in both places she will know the language, so she might consider volunteering in an Italian hospital and/or studying how mental health systems differ across Italy, Australia, and the U.S. If she goes to a university-based program (rather than an independent one) then she might have connections within a university she can use for research.