Basically yes, they're different. Psychology involves studying a lot more research based stuff, counselling is practical vocational skills and theory. That said, there are some Counselling Psychologists who trained in psychology but have added a counselling training on to that. It sort of depends whether she's interested in psychology research, whether she's academic, whether she wants to work in the NHS, and whether she's up for a very competitive environment. If she is then Psychologist may be for her.
If she's interested in people in pain, relationships, human connection skills and trauma, then counselling or psychotherapy would be better (psychotherapist tend to be more highly qualified counsellors, but they basically entail the same job).
Do tell her though that there's a serious dearth of counselling and psychotherapy jobs at the moment (the government prefer to hire unqualified 'wellbeing practitioners' than counsellors because they're cheaper) so she'd most likely end up self employed, which offers great flexibility and freedom but obviously isn't for everyone.
Becoming a clinical, counselling or research based psychologist is likely to take 7 or more years. Becoming a psychotherapist takes around 6 years (or I did, anyway!) and counselling trainings vary from rubbish 'we can teach you in a month!' offerings to proper 3-4 year trainings.
Hope that helps :)