If your kid has more sense than I did, you should look into used guitars by Jackson or Ibanez from around 1990.
They used to be really big at the time, but they've gone out of flavor, so the market for used ones is pretty good. They have a real ballsy tone, are quite easy to play, and most come with a locking nut and a Floyd Rose-liscensed bridge which makes it almost impossible to go out of tune.
Your part of the country should have tons of quality used gear - happy hunting!
His grandfather has helped out too. He was kind enough to let him use a couple of the guitars in his collection, so he has gotten a better idea of the different qualities of guitars. He now has a Guild, a Martin, an Epiphone, and one I can't think of.
Have him check into a Carvin, they are reasonably priced, and seem to have good customer service. My son was set on one, but his grandpa being an older hippie discouraged him because they weren't proven. After further handwringing and arguing the finer points of Carvin's and other brands, my son still really likes the Carvin. He ended up buying Carvin amps. He didn't buy a Carvin guitar, but his buddy has one and he loves it. They are strictly mail order.
Have him check around the internet to see what he should pay for a new or used one. E-Bay also seems to be a great place for used guitars.
The biggest thing I would say is for him to try to take his time and wait for the instrument that feels right to him.
BTW- even if he doesn't have an amp, he will probably play it all around the house attached to his hip unplugged. It saves the hearing for a while at least when there isn't an amp in the house.