I'd pass on the so called starter kits. The ones I'm familiar with have the LOWEST QUALITY tools and parts available. Additionally the run the "piece" count up by including unnecessary tools.
The Artisan adjustable mandrel that Ed Street posted is a quality product that should last a lifetime. Additionally, with Craft Supply's free shipping promotion, you should be able to get the mandrel, a few blanks and a component set for under your budget.
I would NOT buy slimline sets. Beginners almost always make that mistake. Slims are the hardest to make, the parts never fit precisely and they write like crap.
I would suggest buying the mandrel, a Sierra type set (I think CSUSA calls it the Sienna), matching bushings and a couple of blanks. By NOT starting with a slimline you enhance his chances of making a good writing and useable pen on his first try.