Here's my assumptions based on your post:
- Your local text application is GUI based (Eg: Xemacs)
- You are running the SSH session in the GUI (X, KDE, Gnome, etc)
- You can install stuff on the remote machine
- Install your text application on the remote machine
- In the SSH session
# export DISPLAY=IPOFLOCALMACHINE:0
# editorpath exam.txt &
# export DISPLAY=192.168.1.5:0
# xemacs exam.txt &
The remote application will display on your local machine.
NOTE: You will need to ensure the XDM protocol is allowed on your local machine. Check out http://www.tldp.org/HOWTO/XDMCP-HOWTO/
for more details on that.
NOTE: Also, note that your firewall on the local and remote machines might cause problems. Ensure the right ports are opened. (Search /etc/services for xdm I think)