This isn't currently possible with Airtable forms because the form only provides a limited live look at the underlying data. I believe this can be done with some third-party form systems (JotForm and On2Air:Forms come to mind).
However, I believe this could be done using a custom interface. The method that comes to mind most readily is to use the "Record review" interface style, with the student records driving the contents. A filter could then be added that would limit the displayed students based on the link field that points to the selected teacher.