OT-What would you do..

I know how much you want to lend your friend some money.I lent a friend some money years ago,not only did I not get it back but it broke up our friendship.
I would say  BIG NO but if you are going to do it,just enough that you will not miss

give time or love, money is tough...

DON't DO IT
1. you will wind up being enemies
2. you will probably not get your money back
3. she is only a friend(co-worker) not family, doesn't she have any relatives to lend her the money, probably not because she exhausted all her options, her daughter should get a job

she asked you because she knows you are kind and sensitive to her feeliings
Susan

Why isn't the daughter with the baby getting medical/govt assistance for herself and the baby?  I'm sure she more than qualifies!

I've not lent money before to anyone except family.  I would say no to any friend wanting money. But that is just me.  If you can afford to lose $300, then lend it to her.

Shilpa,
I do not lend money to any one - family or friend. It causes too many problems.
If you feel that u want to "give" someone money that u do not need to get back - then that is okay.
Money can ruin relationships. 
Tammy

what Susan said I am on board with her.  Money changes a relationship believe me I know.