This looks a lot like existing co-op programs, where undergraduate students are hired as (typically paid) interns and take a break from classes while they work. AFAIK these programs usually work really well, to the point where my undergraduate college became very competitive and popular solely because of its co-op.
Co-op work is not classwork, so it removes the incentive for students to submit lazy contributions for bad grades. Yet co-op students actually benefit their companies because said companies continue to hire them.
Of course, the main difference with open-source is that nobody is paying the student. But still - either investors in FOSS can "hire" students to work on various open-source projects, or the students can choose to work unpaid (perhaps for less tuition, or part-time work on the side, to make ends meet). But I really think adopting a co-op model would be easier and more effective than trying it in the classroom.
Co-op work is not classwork, so it removes the incentive for students to submit lazy contributions for bad grades. Yet co-op students actually benefit their companies because said companies continue to hire them.
Of course, the main difference with open-source is that nobody is paying the student. But still - either investors in FOSS can "hire" students to work on various open-source projects, or the students can choose to work unpaid (perhaps for less tuition, or part-time work on the side, to make ends meet). But I really think adopting a co-op model would be easier and more effective than trying it in the classroom.