A USB-C Thunderbolt Display that delivers power over the cable and has a USB hub built into it. These exist, though they're expensive.
Or, an eGPU enclosure, which also delivers power over the cable and has a USB hub built into it. (You just need to plug a monitor into it.) These exist, and are surprisingly cheap if you buy them bundled with a graphics card.
For most of the day my Macbook Pro is basically a computer with one port plugged into a dock with its case shut since I like using my LG 21x9 screen more than the built in screen.
1. Make sure an external keyboard and mouse are available, wired or wireless is fine
2. Make sure your MacBook is plugged into power and an external display
3. Close lid
4. Your main desktop should show up on the external display. If your computer goes to sleep you can wake it up by clicking the mouse or typing on the keyboard.
If the external display wakes up as your main display with the same desktop picture and icons as your laptop it means the internal display is asleep.
If your mouse is laggy and display looks fuzzy it means your external is mirroring your internal display and that your internal display is on. Turn mirroring off if that happens.
If you’re worried about heat (lid shut mode blocks the vent that runs the width of the keyboard) you can leave your lid open and use your external display normally.
I have not noticed a heat problem using my 2013 MBP Retina in lid shut mode after my two year old threw a phone at the screen (kids! Lol)
Remove the battery and screen, you get the Mac equivalent of the Intel Stick. Depending on price, I could very much see buying a lot of them for the students (with a USB-C Digital AV Multiport Adapter or equivalent for their home use).
[Edit]I would then stock the labs with docking ports like something from CalDigit and LG displays.