There may be other things about the school that set it apart, but this issue isn't one of them. Graduate students teach classes at most universities across the country without anyone batting an eye. In the case of BYU-I, which does not have graduate level programs, they employ the use of adjunct instructors in similar roles (BA/BS level graduates teaching undergraduate courses).
At the University of Iowa and at North Carolina, 20 percent of classes are taught by grad students. At Purdue, graduate students teach 26 percent of undergrad classes.