Blackboard has added a new feature in the version we're upgrading to on June 7th called "Inline Grading." When assignments are turned in through Blackboard (sadly, this does not include SafeAssignments) you will be able to see the submitted paper without downloading the file.You can draw on the student's paper, highlight text, and comment on it, all from within Blackboard. Watch the video below to see how it works.
Supported document types that can be converted are Word (DOC, DOCX), PowerPoint (PPT, PPTX), Excel (XLS, XLSX), and PDF (PDF).
More detailed information is available at https://help.blackboard.com/en-us/Learn/9.1_SP_10_and_SP_11/Instructor/070_Assignments/003_Grading_Assignments/Inline_Grading_For_Assignments.