The entry in Box 5 on the 1098-T indicates Scholarship received, so it is not necessarily taxable income, unless it exceeds the Tuition amount in Box 1. Otherwise, it reduces the Tuition eligible for an Education Credit. If she has no Education Expenses to claim, she doesn't need to enter the 1098-T in her return.
In that case, since she actually got paid $1500 for her teaching, the 1099-NEC is appropriate. She can indicate that it was a one-time payment, and not self-employment income.
So she either uses the $1500 against Education Expenses (as a scholarship) or reports it as Miscellaneous income via the 1099-NEC, whichever applies to her situation.
Here's more info on Form 1098-T.
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