Hi @Cshillue,
There are a few variables at play here... Are students loaded into the course manually, or via a student information system sync?
If manually, I'd probably look into creating separate sections for each group (if your school/institution gives you permission), and moving the students and faculty into the appropriate section together using the edit sections functionality (again if available at your school/institution), and potentially restricting the teachers enrollments to only that section so they can only see their group of students This does assume that the entire course workload is graded by that teacher.
If your enrollments are from an SIS sync, I don't have a great solution. The above may work depending how your SIS sync is coded, but it could also break your sync processes completely or be undone by the next scheduled sync.
I hope this information may be somewhat useful.
-Chris