It's only a couple of years since I did my CCNA at the local college as evening classes. Their solution was quite simple: each time you do an IT refresh keep back twenty or thirty old machines for the tinkering classes. If a clean OS install is needed the student does it themselves at the start of the class restoring from a Norton Ghost image on DVD. Any network infrastructure or servers needed for the class is similarly set up at the start of the class. This was for all the courses, not just Cisco.
That worked quite well for them, where each class was at least a couple of hours but I've imagine set up and tear down would take up too much time for schools where a lesson is only an hour or thereabouts.