While Large Language Models (LLMs) are increasingly utilized as student-facing educational aids, their potential to directly support educators, particularly through locally deployable and customizable open-source solutions, remains significantly underexplored. Many existing educational solutions rely on cloud-based infrastructure or proprietary tools, which are costly and may raise privacy concerns. Regulated industries with limited budgets require affordable, self-hosted solutions. We introduce an end-to-end, open-source framework leveraging small (3B-7B parameters), locally deployed LLMs for customized teaching material generation and assessment. Our system uniquely incorporates an interactive loop crucial for effective small-model refinement, and an auxiliary LLM verifier to mitigate jailbreaking risks, enhancing output reliability and safety. Utilizing Retrieval and Context Augmented Generation (RAG/CAG), it produces factually accurate, customized pedagogically-styled content. Deployed on-premises for data privacy and validated through an evaluation pipeline and a college physics pilot, our findings show that carefully engineered small LLM systems can offer robust, affordable, practical, and safe educator support, achieving utility comparable to larger models for targeted tasks.