Starting my final year of university next year so I decided to get a head start on my final year project, problem is im not really sure what that is. Due to experience and the software capabilites im probably going to use UE4. Any ideas, help or tips?
Which kind of university? -> game dev., software programming,… 
When it’s just a programming part, you could probably create a prototype of a gameplay feature (e.g a complex combat system,…)
In my final university year of Creative Computer Games Design (it was an Art degree but we studied gameplay and storylines too), I built an educational game. Perhaps you do something like that if your studying something similar.
For context my course is Gameplay Design and Production 
Which is essentially all game design but not modelling, so focusing more on engine work and scripting
That’s an awesome idea! For such a game you dont need any fancy meshes or textures. You mainly have to do the stuff in the engine. 
Otherwise create something like a plugin or unique gameplay features.