I had a problem sparring with students because once I started, I found myself stuck in that mode of teach-sparring and loosing in competitions. I got to comfortable allowing people to hit me cause i knew they couldn't hurt me (I'm not saying Im superman, just you learn how to move and absorb the kicks and hits so you do not take their full power) I competed alot and kept loosing becasue I let people make contact. I know it sounds like an easy fix for most, but that was always my challenge.
If you want to continue to compete... I wouldn't get into the habit of sparring with opponents lesser in skill than yourself. Now I am getting old and obviously my days of competition are going behind me so it really doesnt matter anymore to me. I enjoy sparring and teaching students how to spar and find openings and timing. I can control the match to let them learn and score/hit.