Fontstruct is an online place to build fonts. It's set up very simply, so you can set a grid size and choose from a wide variety of blocks and elements.
I'd highly recommend viewing the introductory video (runs under 10 minutes, and the narrator has a lovely Scottish accent), and if you're going to use this with students, show it to them too.
Requires registration (free) and an email address, and offers possibilities for storing/sharing/sharing under Creative Commons licences.
Offers possibilities for a number of subjects, and not necessarily a whole alphabet - maybe just students doing a single letter (eg. their initial). Or, from a teacher librarian point of view, it's another way to devise a distinctive library logo.
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