To be honest, I'd say keep school/work and personal computing separated. Upgrade your desktop, and see what options your school offers (ie. loaner laptops).
I did a programming course and could never imagine combining what I want (entertainment, music, gaming, etc), with what my school wanted (MySQL servers, Java dev programs, linux partitions, etc). Plus, if something ever went wrong, you'd loose a lot of information.
Another thing to think about, is if you'd ever need to use the advanced features of the laptop outside of your home. Like, do you ever watch DVD's, or play video games out in public? If not, stick with a cheap laptop that'll get you through your course, and do your own thing at home.
Hope you make the right choice for you.
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