Those are perfect for the purpose. Quilts are certainly "hugs to go". I have had similar experiences and am certain of the healing power of quilts. It must be the love that goes into making them. Hurray for you and for those who get these quilts.
PS. one rag quilt square might be perfect in a backpack.
Hmm--I have a great class this year, and was considering making them each something--and wondered if a four square ragged flannel patch would be enough... it'd take a long time with 23 kids...so it'd have to be something small. I always do bookmarks... and one year did a black and white splash block for each (there was a story behind it)... but now I need to get ready for craft shows, so spend less time on students.