Well at 16, she is too young to have a baby. She is not emotionally or mentally ready to deal with responsibilities that come with having a child. And it's not cool to have a child (who doesn't have any say in whether to be born or not, how the child's life should be, etc.) to be brought up by a child who is still searching for herself.

Personally, I would either have an abortion or give it up for adoption. Having a child WILL change everything. She will have to put her life on hold and she will have to give up a lot of things and miss opportunities that may have been part of where she wanted to go in life. Things will just take a lot longer to achieve.

I hope you two luck and please encourage her to talk with someone who isn't narrow minded and someone who really has the best interest for her.