Android already has all the built-in functionality you would need. Maps. GPS. Developer platform. At that point, it is a matter of following on of the may tutorials on using the maps API to whatever end you want.
Although, I must ask why you are choosing to work on a solved problem? If you have Android you already have directions (both local and otherwise) available to you.
Google Maps, Nokia Here, etc. Google Maps is pretty ubiquitous. Nokia maps are more for the mobile domain such as cell phones, GPS devices, and automotive navigation systems. FWIW, Nokia maps were able to navigate me to some pretty obscure places in foreign countries where Google was clueless! They have extensive maps for several hundred countries... :-)
Disclaimer: I work for Nokia Mobile Phones, and Nokia Here is in the same building where I work. My wife prefers Google Maps. I prefer Nokia Here. Go figure! Anyway, she will have to admit that the Here maps kept us from getting lost in the nether regions of Mexico last year.
All of that aside, I agree 100% with L7Sqr. Use what is there. Most of your work will be integration and presentation, but that is still a good university project exercise.
Final comment. If you are determined to "roll your own", then consider the OpenStreetMap project data to use (good street map data), and learn how to use it to display what you want. Here are a couple of good links: www.openstreetmap.org and http://wiki.openstreetmap.org/wiki/API