Have the students create their own logo. This is a design they can use throughout the rest of the term and, if they like the design, possibly on future business cards for themselves. The project also helps them learn a few of the basics in programs such as Adobe Illustrator.
Being able to design a single page is one thing, but continuing the design onto multiple pages is something else. Have the students design their own CD or DVD booklet insert. This should consist of several different pages that either tell a story or just describe the music of an album. This also helps the student graph multi-page editing programs such as InDesign.
Give the students an image with imperfections, such as scratches in the picture, acne on individuals or other problems with the image. Have the students edit and manipulate the image as they see best. This will teach them many of the powerful tools in Photoshop.
Have the students design their own portfolio. Standard portfolios are a dime a dozen and typically consist of no more than a manila folder and high-quality paper. This should never be the case for a graphic designer, and even if the students do not enter the graphic design field they can use what they learned to create and eye-catching, attractive portfolio, which is something job recruiters are not going to forget. This task has the students use multiple programs they have learned throughout the school year, such as designing a business card, a full-sized, multiple page document, and any other printed information necessary for the portfolio.