Google Summer of Code 2006 is a program that offers student developers stipends to create new open source programs or to help currently established projects.
Google Summer of Code 2006 program’s goals are to inspire young developers and provide students in Computer Science and related fields the opportunity to do work related to their academic pursuits during the summer, and to support existing open source projects and organizations. Google defines a student as an individual enrolled in or accepted into an accredited institution including but not necessarily limited to colleges, universities, masters programs, PhD programs and undergraduate programs. See the FAQ for more info.
Last summer, they brought together 400 students and 40 mentoring organizations from 49 countries. Google will provide a stipend of 5000 USD per accepted student developer, of which 4500 USD goes to the student and 500 USD goes to the mentoring organization. You can apply for Summer of Code 2006 starting on May 1, 2006.