We here are not doing 1:1, but the most sensible solution would be to create a Apple ID for all the students, then give them the VPP Codes to redeem...
Yeah it will be asking you to login, if you are using IE on a domain PC, it should auto do it for you. You have to login with domain\username style
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Just to let you know, from planning, deploying and now watching them grow in the classrooms, iPads are not designed for education or for a multi-user...
We have gone for the IT budget to start off as it was identified in a FIP, we don't share our iPads across departments though, DT have 15, they also...