I solved this prior to any feedback, but thought the answer might be beneficial to future searchers:
If students can't see a folder resource - - -
Under Site Administration:Users:Define Roles: Gear icon
Activity:Folder:set view folder content to allow for STUDENT ROLE.
Oddly enough, prior to making this change, I was not able to add ANY type of activity or resource, but after making this single change, I added additional activities without an issue.