Domain on on-premise Exchange and subdomain on Office 365 coexistance

We have a client with, what seems to me, an odd request regarding their exchange topology. They are a small college and have their mail split between on-premise and O365. Their on-premise Exchange 2013 has email setup for domain.com, used by the
faculty.  Their O365 is setup for students.domain.com and is sync'd with AD using MSO Dirsync.  Currently, the two do not interact at all and is causing issues with staff emailing students.  Since they are educational, we have advised them
to move the faculty over to O365, however they throw that option out every time we bring it up.  They want to keep their faculty email on premise and leave the students in the cloud.  They want these separate, but still want the features
of a single exchange forest.  They want the students to be in the address-book, and be able to use distribution lists between the two.
What I'm wondering is if hybrid deployment will allow this to happen.  Based off my limited exchange experience, hybrid is used for the same domain across on-premise and O365, not for 2 separate domains.  I feel like two separate domains doesn't
really matter, since they are all AD mailboxes anyway. 
What I'm asking is if hybrid deployment would be the way to go for this, and if there would be any documentation as the how to this exactly.  What I'm finding is documentation on the same domain split between the two, not 1 domain on exchange and 1
domain on O365.
Any help is appreciated, thank you!

Thanks for the reply! Fortunately for our situation, all the accounts in O365 are deleted at the end of the semester, so to completely rebuild the O365 setup is not out of the question at all.
I guess I'm curious about the specifics for this. I've setup hybrid deployment before for a single domain, so I take it this will be similar. I suppose the DNS wouldn't need to change, right? O365 would receive mail for students.domain.com and the exchange
would receive mail for domain.com.  Then they'd each rely on the connectors to send mail back and forth.  What about DirSync, would I then need to sync the staff as well as students to O365? 
And how about OWA, would the students then access webmail through OWA, or still use O365?
Sorry if any of this is basic, exchange is my weakest skillset.
Thank you!

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