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Also. she stated it would be a huge hassle to change tags (going to Michigan) and since she is leasing the car (and I believe the lease will be up by the end of 2006); her car dealer recommended to her that once she moved, not even to bother getting newer tags.
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It might be a huge hassle but it's also the law -- she can't pick and choose what laws she chooses to follow... I strongly doubt that a car dealer would tell her to break the law...
The big question I'd ask, is she an insured driver on your car? If she's not, then no way would i let her drive it...