undocumented college students?

No you can't apply without leaving the country and starting from there.

In a few years you may graduate and then you will notice all the good jobs most people get with a college degree will be out of reach for you.

Those jobs require legal documents.

So before you go too far down that dead end road, why not take care of the visa first?

If she petitioned for legal residency five years ago she needs to do whatever it takers to get an attorney (or at least a community organization who can assist her). She cannot work legally until she resolves the issue, as she is here illegally. International students get jobs only if they come here on student visas. That is because they are legal for the duration of their visa. If she has any paperwork received from the INS/USCIS she might take a look at the link below and see what the processing times are for her type of visa. I am not a professional but have been through the immigration process.

NO, you cant. As long as you stay in school though, you cannot be rejected. It is when you try to transfer to a university that they will see your I-20 has expired. It disables you from applying to other colleges. Best thing you can do is stay and try to get the most education you can at your current college. After that, youre basically a toothless tiger. God bless us all.