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The internet has made it easy to get a bookstore quality printing of your own book. It is a great way to motivate your students to produce their best work!
Here are some ideas:
Try starting with a mind-mapping or brainstorming session. A couple of online tools you could use are Bubbl and Mindmo.
If you don't already have a word processor, try Open Office Writer. It is part of the Open Office Suite and a great free software package to install. There are also free online word processors like Zoho Writer.
There are several online sites that will print a hard or soft cover book at reasonable prices. Check out Blurb and Lulu to get started.