I would like to setup a Stack Overflow(ish) private instance for student projects at our university. Instead of letting students send their questions only to the supervisors of the projects, I would like them to share the questions with their fellow students also. The projects usually involve developing software using a variety of technologies. Running a private instance of Stack Overflow would seem ideal to me, since I can monitor what is going between students. Since this is not free and I have no budget for this... any other solutions are also welcome! Has there been any thought on using Stack Overflow in education and making this free?
Stack Overflow Enterprise is now available for internal use, but that is meant for large companies only.
If the site can be available to the general public, you might consider proposing it at Area 51 — if you get enough followers, and commitment, then they will create and host one for you, but it will be public.
There are alternatives to the Stack Overflow engine which do much of the base functionality. Search for "Stack Overflow clone" on Google and you'll find several that are ready to use.