I think it is like this. The person that is going to become a good engineer is not going to ask for a project idea. For this person the idea's are swarming in his or hers head. The only problem they have is which of all their ideas to choose from.
Many students would only do a project when it is an assignment. For the inspired engineering student, they have already applied their knowledge that they have gained in yr 1 and 2 to develop many projects. By yr 3 they are like a young bird ready to fly, and the professor must put a clip on their wings to hold them back from the real world for another year.
These are the ones that become great engineers. It is all about passion in what you do. For a good engineer the subject is not something you study just to get a degree, you study it because it drives you and you want to learn more. This seperates the good engineers from the bad.