When Google recently broke apart their tools into smaller pieces (drive, docs, sheets & now slides) there was a small bug the caused extra workflow steps to organize documents.
When a student went into a folder in Drive & created a new document, they were bumped out of Drive and sent to Docs to create and edit the document. The problem was that the new document did not exist in the folder where it was created and there was no way to move the location of the doc from the Docs app.
When a doc is created in Google Drive in a folder, it will exist in the folder.
When students are working with a document in the docs app there is finally an option to move & share the document.