Thanks for the replies.
We talked to an attorney and he said that we probably have a case, but there are no real damages that he could go to a jury with since she wasn't a professional model or Brittany Spears...yes he did say that.
He told us to talk to the photographer and ask to see the consent form. We did, they say they have everyone sign one, but they could not produce the one she supposedly signed.
They agreed that some compensation was in order since they used her picture without specifically informing her that they would be using her picture to send to a couple thousand high school seniors in several cities in the area and agreed to give her $300.00 worth of photographs.
The photographer also said that in the future, he would be more specific when he wants to use someone's image for such a mass promotion. He had originally told my daughter that he wanted to put a framed picture on the wall of his studio.