AT 1544 EST, A BEECH K35 (BONANZA), N106Q, & A PIPER PA-34-200, N56670, COLLIDED WHILE THE ACFT WERE FLYING OVER THE VICINITY OF THE SPARTA VORTAC. THE BONANZA PLT WAS ON A LOCAL FLT WHILE THE PA-34 WAS ON A MULTI-ENG TRAINING FLT. THE STUDENT IN THE PA-34 STATED HE WAS USING A HOOD WHILE FLYING & HE BELIEVED HIS ACFT WAS FLYING STRAIGHT & LEVEL ON A HEADING OF APRX 240 DEG. HE DID NOT REMEMBER ANY INDICATION FROM THE INSTRUCTOR PLT (CFI) OF AN IMPENDING COLLISION. AFTER THE COLLISION, THE CFI TOOK CONTROL OF THE PA-34. THE STUDENT REMOVED HIS HOOD & SAW AN ACFT TO THE LEFT FRONT OF THE LEFT WING IN UNCONTROLLED FLT. THE CFI TOLD THE STUDENT TO SHUT DOWN EVERYTHING. THE STUDENT HESITATED THEN SHUT DOWN BOTH ENGS. SUBSEQUENTLY, THE PA-34 CRASH LANDED IN A WOODED AREA. THE BONANZA CRASHED IN A STEEP DESCENT & BURNED. DEBRIS WAS SCATTERED ALONG THE 265 DEG RADIAL OF THE VORTAC & V-419. THERE WERE INDICATIONS THE LEFT WING TIP OF N106Q HIT (NEAR HEAD-ON) WITH LEFT INBRD WING/FUSELAGE OF N56670. SUN ELEV 15 DEG. CFI SUFFOCATED, NOT WEARING SHLDR HARNESS.