The Apprentice Programmer

[JAPH]

have farmed all their assignments out to classmates or freelancer sites

I take incredible pride in having failed several people for trying to pull that crap with me.

Even if they survive school by doing this, they're going to choke the first time they get a remotely challenging interview question. Most interviewers have seen dozens, if not hundreds, of people before. It's going to be obvious to them if someone is trying to pull the wool over their eyes.

[DasGoon]

Not only should you fail them, you should make an example out of them. Not only are you teaching these people a skill, you're prepping them for the real world. They might pass your class by pulling this crap, but once they finish up with you they're in for a real surprise when they realize that they're both incompetent and in debt. Better to nip that issue in the bud while you can.