I taught A level photography for a short while. The 6th form college I worked at suggested a DSLR as ideal but were willing to allow the used of a good quality compact as long as it had fully manual settings and could generate RAW files, something like a Canon G16.
We did not insist on the students purchasing Photoshop for home use-most of the image manipulation was done in class on the college computers which had Lightroom and Photoshop.
Elements would be fine for most of the work that the students would be expected to do in their own time if she is following a similar specification. It is the setting up and capture of the initial image that was more important than the post capture manipulation in our departments view, although clearly a good understanding of the processes involved in image manipulation is essential.
the old chestnut about polishing was oft used- if the initial photo is no good, no amount of tweaking was going to improve it