It looks like Google is hosting another Summer of Code. From the FAQ:
Summer of Code 2006 is a program that offers student developers stipends to create new open source programs or to help currently established projects.

It was reported as big a success last year and there is already a bit of excitement on the IRC channel. If you are interested in participating as a student or a mentor, check it out as the deadlines for applying for both positions are fast approaching. Yay for open source!