This world's Rachel Grey's life mirrors that of her mainstream counterpart up until the point when Jennifer Walters came to the Jean Grey School for Higher Learning to read the last will and testament of their mentor Charles Xavier which revealed the existence of the omega-level mutant Matthew Malloy.
With Rachel and the rest of the X-Men present, She-Hulk could not read the will as it required for all members to be there which included their former leader Cyclops. With Beast being the only one who knew where Cyclops was, Storm took him and Iceman in the Blackbird to Canada while Rachel and the others stayed behind.
With everyone finally assembled at the school, She-Hulk read the will and revealed two major secrets, first one was that Xavier was married to Mystique before he died and secondly learning of the existence of Matthew Malloy. Realizing the potential danger this mutant could pose, Rachel went along with Cyclops, Wolverine and a few others to intercept Matthew in South Carolina after S.H.I.E.L.D.'s attempt failed.
Rachel contacted Matthew telepathically by using illusions of Professor X and most of Earth's mightiest heroes to get him to stand down but Rachel's charade only lasted so long. Malloy was able to break through the mirage to realize the X-Men were behind it, but he did not blame them, so when he destroyed the Helicarrier he teleported every member back to the school.
Rachel ended up appearing on the front lawn where the students asked her if she was okay. Rachel then had to rush to Storm's room to telepathically wake her from the catatonic state she was put in after being teleported back there.
Rachel spent the rest of her time at the school, experiencing everything from the psychic shockwave broadcasted by the new mutant of the deaths of Cyclops and Magik, to Emma's diamond form being shattered by Malloy.