Without really knowing the details, and assuming that the student truly changed and sincerely asked for mechilah, I believe it is absolutely awful on the part of the teacher to do this. No matter WHAT the student did, the teacher at this point should not be speaking loshon hara about something that occurred in the past. Unless the teacher has reason to believe that the student has really NOT changed, there is no purpose served by bad-mouthing him or her.
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