Yes, it’s definitely possible. Note that the higher authority permissions are only inherited *within a user group*. As long as the Teachers and Students are in separate groups, they’ll never inherit each other’s permissions.
And if there is also a TeacherResources resource group and a StudentResources resource group you can tie each user group to its own resource group and they’ll never see each others’ resources directly or in a menu (unless a resource is in both resource groups).
Hope this makes sense.
[update] Ok, I’m feeling guilty about not giving you more information about how to do what you want. If neither the teachers or students will be logging into the Manager, it’s actually fairly simple and you don’t care about authority numbers at all because you’re limiting access to the resources themselves.
Create a Teachers user group and put the teachers in it.
Create a Students user group and put the students in it.
Create a TeacherResources resource group and put the teacher’s resources in it.
Create a StudentResources resource group and put the student’s resources in it.
Create a Teacher role with an authority level of 5
Create a Student role with an authority level of 7
Go to Security -> Access Controls - User Groups tab.
Right-click on the Teachers user group and select "Update User Group."
Click on the Resource Group Access tab
Click on the "Add Resource Group" button.
Add an ACL entry with the following fields:
Resource Group: TeacherResources
Minimum Role: Teacher
Policy: Load Only
Context: web
Save.
Now do exactly the same thing with the Student user group, but with the following values:
Resource Group: StudentResources
Minimum Role: Student
Policy: Load Only
Context: web
That should do it (unless I’m forgetting something).