NMAC - STUDENT CUTS HIS PATTERN SHORT AND ALMOST HITS ANOTHER ACFT ON ITS FINAL APCH.

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THE FLT BEGAN WITH THE STUDENT AND MYSELF FLYING A LCL TFC PATTERN AT CHA PRACTICING TOUCH-AND-GOES. HE WAS FLYING WELL SO WE DECIDED IT WAS A GOOD TIME FOR HIM TO DO HIS FIRST SOLO FLT. AFTER BRIEFING THE STUDENT ON WHAT TO DO; HE TOOK OFF FOR 3 TOUCH-AND-GOES. ON THE SECOND ONE; THE STUDENT TURNED BASE AND STARTED TURNING FINAL BEFORE THE CTLR HAD CLRED HIM FOR A TOUCH AND GO. THERE WAS ALREADY AN ACFT ON FINAL THAT HAD BEEN CLRED TO LAND. THE OTHER ACFT SAW MY STUDENT AND ASKED THE TWR CTLR ABOUT HIM. THE CTLR TOLD THE OTHER ACFT TO DO A 360 DEG TURN AND RE-ENTER FINAL. I WAS STANDING ON AN FBO RAMP ABOUT 3500 FT DOWN THE RWY SO IT WAS DIFFICULT TO SEE HOW CLOSE THE ACFT WERE; BUT THE OTHER PLT TOLD TWR THAT 'HE WAS AWFULLY CLOSE.' I THINK THE MAIN CONTRIBUTING FACTOR WAS THE EXCITEMENT OF MY STUDENT ON HIS FIRST SOLO. I HAD BRIEFED THE STUDENT BEFORE AND ON THIS FLT NOT TO TURN BASE UNTIL CLRED BY THE TWR; BUT IN HIS EXCITEMENT; HE FORGOT. OTHER CONTRIBUTING FACTORS WERE MYSELF AND THE CTLR NOT NOTICING THE STUDENT TURNING. I HAD A HANDHELD TRANSCEIVER; BUT DID NOT SEE HIM UNTIL TURNING FINAL. FROM NOW ON; I WILL STRESS EVEN MORE STRONGLY TO MY STUDENTS THE RULES OF CTLED ARPT TFC PATTERN AND THAT JUST BECAUSE A CTLR HASN'T POINTED OUT TFC TO FOLLOW OR SOME OTHER INSTRUCTION DOESN'T MEAN THEY WERE CLRED TO LAND.