IMO that's not Cayman - probably the most expensive diving we've done. I also don't consider it "rustic"
Except for fligtht costs which are high - aome of rhe smaller Bonaire properties might work. Witj a larger group ypu would just about take over Bruce Bowker's Carib Inn and they have a couple different sized boats as well as a shore dive.
Another inexpensive option would be stay at the Dive Hut in town and boat dive with Wannadive - their affiliated operation.
No shoredive at rhe Dive Hut but there's only about 60 others within a few minutes drive,
One other option to consider is Anthony's Key Resort on Roatan if they still offer the 2 for 1 special. Their shore dive is average and shallow off the key but there is also a small plane? wreck in the channel used for training. AKR is an AI and a little removed from everything yet there's nightlife in the West End 10 mins. away. Also a lot of bugs and Malaria is a possibility. Flights are higher also unless you book real early.
Roatan is plenty rustic. Reef House Resort on the south side even smaller and nore rustic with it's own house reef.Don't know much else about it.
I'm not comfortable recommending this but you might look at Fabtasy Island also - the resort has declined/gone rhru several mgmt. changes but my friends got a real good deal a few years ago. I believe they still have an in house shop/boats and they share the Cocoview shore dives from across the channel - both a wall dive and the Prince Albert which was put down to dive. From what my friends said FI was pretty rustic and not a lot of hot water or A/C - on Roatan you want that...
The cheap and arduous way there is thru San Pedro Sula with a puddle jump over on Sosa or the other regional - 30 min.flight. Or with a group charter a van and teke the ferrt from La Ceiba on the coast,
That option also makes Utila a possibility but about the only AI dive resort there with shore diving is the pricey Utopia Village which is by itself on the south side. Another non-AI option there could be Coral View Beach Resort which has a house reef. I don't believe any of the in-town small dive resorts have a shore dive. Mango Inn is a popular option there. Good diving IMO Better than Roatan, All of Utila is Rustic... Outside chance to still snorkel with Whalesharks then also.
hth
I thought of Bonaire because of the shore diving, but most Bonaire resorts are not all-inclusive although some have food options. If you are looking for a lower cost AI on Bonaire then you should look at Plaza Resort - but it is rather touristy and alcoholic beverages are included in the package prices. Also, flights to Bonaire can be difficult and expensive. Shore diving is such a major focus on Bonaire that you really do need to rent a vehicle(s) to take advantage of Bonaire's shore diving - so it doesn't sound like a great match for the OPs class of college students. And there are some expensive and touristy distractions on Bonaire - not many - but it is a cruise ship port and there is even a small casino.
Flights to Roatan and the other Bay Islands may also be expensive and difficult, but you can find cheap all-inclusive resorts with both shore and boat diving there. I was concerned about the risk of Zika but when traveling to the Bay Islands visitors also run risks of contracting Malaria, Dengue, Typhoid, and dysentery associated with the consumption of food and water. And you have to regulary apply DEET whenever you go outside or get out of the water, to reduce the risk of a mosquito-borne infection. It might not be the place that I would want my college-age offspring to visit, and even Roatan has some touristy spots on the west end.
I know that Grand Cayman can be very expensive and touristy (but no casinos) but Cobalt Coast is much more of a small, family-owned, all-inclusive, simple, dive resort. It is definitely "off the beaten path" because it is up near Hell and if you don't have a car then you won't have access to any of the tourist attractions available on GC. The public buses don't run up there at night and I'm guessing that the students will be busy during the day. Even if they managed to get to the bars, restaurants, and other attractions, I think that they would be too expensive for them to get too distracted!
CC is rustic for a Cayman resort property although the new owners are working to upgrade it. They don't have any indoor dining, the guests eat 3 meals a day in open air seating or aound the tiki bar. Even Reef House on Roatan has an indoor dining room!
I have seen some very good AI prices offered for packages for Cobalt Coast on Grand Cayman, in line with (or even cheaper) than many other AI dive resort locations, and I'm sure that any dive resort would be happy to offer discounted prices to someone bringing in a large group. And the Clearly Cayman resorts are really trying to build a reputation for their newest and least updated property - I'm guessing that they would work with the OP on options and pricing if they have availability.
Also, some AIs only offer packages that include unlimited alcohol, but the Clearly Cayman resorts (including Cobalt Coast) offer packages both with/without 3 drinks per day, and they have a good system for tracking consumption. These students aren't on Spring Break, so that might be a consideration.
Also, keep in mind that the prices quoted for CCGCR include the taxes, airport transfers, and hotel service charges. The only extras are the tips for the dive op (and Nitrox if you use it.) Look carefully at the prices quoted for many destinations because there are often extras added on to the base price; even the cheapest resorts in the Bay Islands will add-on a 19% tax. On Cayman there are no "Exit" fees" to get out of the country and no "Marine Park" fee to dive the reefs.
I tried to think of some other inexpensive, shore diving, easy-to-get to, all-inclusive resorts. Shore diving is available on St. Croix, but it is not an inexpensive destination. The only AI that I know of on Croix is the Divi and they are touristy, pricey, they have a casino, and they don't have a house reef.
I think that the OP should at least take a look at CCGCR, because it might work well.