eBackpack is a service that provides cloud file storage and the ability to share files. Teachers and students can use it as a file storage service and teachers can use it to create student eportfolios. It also allows you to share files with others and collect files in an electronic dropbox. It's safe and secure and e-Rate eligible. There are free accounts available with 3GB of storage.
This could be a great resource for teachers to go paperless, create eportfolios and also to provide students with cloud file storage.