Note: The point of this requirement is just to assure that students have a reasonably sophisticated text editor in class — at least with features such as auto-indent, multiple documents open at once, tab-width control, etc.
There are many good options here, and if the students or instructor have a preferred tool we encourage them to use it. As a default, we recommend the Crimson text editor: it is freeware, a quick download and easy setup, and performs well for basic text editing, programming, or XML editing tasks.
We provide a few simple custom configuration files for Crimson, and these are referenced in other setup documents. If you choose a different text editor or IDE, you will need to duplicate these configurations for that tool.