I would check with your child if google docs is sufficient. In a lot of schools, it is. You can save the files, print - everything, and it's free, while Office is expensive and the schools know that not all the kids can afford to buy it.
(I haven't used Office in I don't know how long, and I got through five years of college using Google Docs just fine.)
What kind of laptop will depend on what your child wants to do with it. Do they just want it for internet browsing and such, or are they going to want to play the latest and greatest games on it?