LooseStitch is a free collaboration tool for writers. It's fun to use - although I found that it takes a bit of practice to figure out how it works. You can create outlines for all sorts of things and invite as many friends as you want.
I think students may find LooseStitch particulary useful. However, it's worth noting that "Pages being shared may be promoted and linked by crossroad solutions as example uses of the Service."
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