From time to time, people try to make the Bible say things that it doesn't really say -- but they're only able to do this if they look at just a small part of it and ignore the rest. But we don't do that with any other book; why should we do it with the Bible?
Your friend's example is a case in point. Yes, the words she quoted are in the Bible -- but she didn't quote the whole verse! It says that these are the words of a fool: "The fool says in his heart, 'There is no God.'" (Psalm 14:1). In other words, the Bible is saying the exact opposite of what she claimed it was saying. She was twisting the Bible to make it say what she wanted it to say -- not what it really says.
However, your friend's real problem, I suspect, is that she doesn't want to believe what the Bible clearly teaches: that we are sinners, and we need Christ to cleanse us from our sins. She senses that if she admitted this, she would have to yield her life to Jesus Christ -- and she doesn't want to do that.
Pray for your friend, that God will convict her of her need of Christ and draw her to Himself. And if you've never given your life to Jesus, or if you're unsure, make certain of your salvation by asking Him to come into your life today.