Okay, am I the last one to know about this?
Edublogs.org offers, well, you can read the post title. Free blog hosting for librarians, teachers and students. I just signed up, but from what I can tell they have it tricked out with all the bells and whistles you might want. I'm thinking about hosting my next idea for a podcast project there.
Very cool! I just wish I'd known about it when I gave my presentation on personal websites for librarians, since I talked about blogging and WordPress quite a bit.