Most collage or uni student that i deal with get a Entry Level Notebook. If not some thing second hand, somthing really basic like a :-
HP Compaq NX 9110 DY879PA#ABG
Intel Celeron 2.8Ghz (M), 256Mb DDR Ram, 40gb Hard Drive, CD-Rom, Floppy Drive, 15"TFT Active Display, 56K Fax/Modem, Ethernet, Windows xp Pro,
and then they scrapt together a resonable desktop computer for at home or dorm. Some thing like an AMD Athlon 2Ghz, 256Mb DDR Ram, 32Mb Video Card, 80gb Hard Drive, CDRW-Rom, Floppy Drive, Windows Xp
And to top it off, some thing like MS Office Student / Teacher Edition that comes with 3 CALS, and at a really good price.