I'd be interested.

What about this for a name?

[i]La Congrega del Talento[/i]

Races aren't that bad. If you use them, I don't like the faction idea based on race. I think it becomes too WoWish or DnD ish. It also depends on the style of fantasy you want. Straight fantasy could work with factions, but I think it should be based on skill and ability not just what they look like. 
The modern twist can get silly with other races like Orcs and Trolls and what not, it would have to be Hogwarts style or Straight Fantasy.
I think faculty members would be NPC, otherwise the plot and story could fall apart.
And for something like this, especially with being trained for war, perhaps the age range would be more mature, like 18ish?

I agree with nrtashi and the whole government abductions though, it does sound too prison breaky.