Yeah, it turns learning into a two way market. Students' costs are low and often they have a great deal of financial support. But their performance, if it is incentivised by winning money not just a great mark, it brings a lot more people into it. Even the 'i dun care about money' crowd will still aim at their own personal performance targets and get what they deserve regardless of what they think about the system.
The amount of money to pay the teachers also then becomes directly relatable to the performance of their students as well. A leaderboard for teachers will be part of it as well, and the more successful they are at warping the bell curve to the benefit of all, the more highly regarded are those who helped acquire the qualifications. It would be an incredible boon to education. It is something Steem could adapt part of its functionality to as well.