For most uses (and particularly to offer the greatest flexibility on a photography course), a good optical zoom is far more important that pointless addition megapixels. However, for someone actually studying photography, I'd have preferred to see them opting for something like an 8x to 10x optical zoom, rather than 5x.. Additionally, I'd think it important that the camera should offer a true 'manual' mode, as well as both 'aperture priority' and 'shutter priority' semi-automatic modes. These feature enable the user to control the aperture (and hence the depth of field) and the shutter speed (and hence the effects of motion).
In an ideal world, I'd suggest that all photography students should use a digital SLR camera. However, your budget might not run to it. For example, the Pentax K100D costs around �280 with an 18mm-55mm (=3x optical zoom lens) but you'd have to pay a lot more to add on a decent telephoto zoom lens.
On a budget which is more realistic for most students, I'd be considering something like the Fujifilm FinePix S5700:
http://www.fujifilm.co.uk/digital/cameras/s570 0/
It's got a 10x zoom, 7.1Mp and all of the required shooting modes (i.e. manual, shutter priority, aperture priority, etc).
It's been selling for around �140 on the high street but its �94.99 online:
http://www.buyacamera.co.uk/xsearch.asp?RecId= FUJCA462&pt=f
Chris