Hello Mehjabeen,
The latest version of MathType (version 6.6), a commercial product by "Design Science," claims to be able to convert hand written equations into images and/or TeX math expressions. I have not tested the product yet. My School has just purchased it and is in the process of installing it for Math teachers. It works also with (Microsoft) Word. I guess that you will need to get at least a "tablet" so your instructors can write by hand the equations and have the program encode them into TeX.
Here is a link to the MathType site with the announcement:
Hope this helps...
Cristina