I had this problem and searched everywhere for the answer with no avail. I decided to do a Factory Wipe of the phone. After I did the Factory Wipe I actually found where and how to erase the "Word Suggestions". It has nothing to do with google it has to do with Swype Text and the "Language and Keyboard" under settings. So here is your answer x
Settings>Language and Keyboard Settings>Swype Settings>Word Prediction
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