I am just thinking this through as I am reading it, but couldn't you set up a "template" page with all the correct permissions that you want for the students to be able to edit, then use that page to make copies? Then all you would have to do is change the name of the page to whatever you want. Each student would probably have identical permissions for their specific page to all the other student's pages, so it makes sense to start from a template. All you need to do once the pages are copied is to change the name of each page and set the page permissions so that they are only accessible to them or you as the admin. You would add each student as a user to their page. Sounds good in theory but I haven't actually worked through the scenario completely. But it seems that it would work. In reality, you probably don't need to set each page's blocks permissions for each individual student, but rather set up each page so that editable regions are set for all students, and then attach editing rights to the total page.

Hope that helps (at least gives you something to test...)

I should clarify- prior to creating your template page, create a user group caled "students", add all the students to that group, and when setting the block permissions on your template page, give editing rights to each editable region to this group and the admin only then give write permission to each page to the specific student by adding them at the page permission level.