This unofficial add-on is for Google Sheets. It will create a folder for each student on your roster. Put a list of your students in the spreadsheet and run the Add-on to generate the folders!
The request was to be able to make folders in the folders. This creates a folder per student and then puts a sub folder for each column value into that folder. Links to all folders are put into the spreadsheet. Folders are shared with student if email is provided.