I would go through Jillaine's recent thread on hand quilting.
She asked a specific question, but there was a TON of information about needles and batting and thread and marking and even what sort of fabric to use to start. Also some great links to sites and videos.
http://www.quiltingboard.com/t-146691-1.htm
Also, most any thread by borntohandquilt (Andrea in Germany) also ends up with fabulous information. She's such an artist.
Here's a tutorial she wrote:
http://www.quiltingboard.com/t-142087-1.htm
Are you going to use a frame or not?
That affects the cost for the student as far as supplies go.
Should they baste their 18" square before class so you don't have to waste time in class while everyone does that (see handout link below)?
Maybe you'd provide the kits for a nominal fee of the squares already basted, but you could do a demo for them.
Don't make them buy a ton of stuff (I hate that) but bring all your tools and notions to demo and explain why and which ones are better.
But they should come with a marking pen and needles and thread. That will make the shop owner happy that she's selling something to them. ;-) Then they can buy more after the class if they want.
Here's Sharon Schamber's video on hoopless quilting:
http://www.youtube.com/watch?v=bDcLMiR2SAo
You can send the this link to each student so they can print it out for themselves:
http://www.sharonschamber.com/free%2...20Quilting.pdf