I just ran into this issue yesterday with a fresh install of Xubuntu
14.04.4 on a machine with nVidia 650m video. I can blindly type in
password and then get to lightdm session when in nVidia mode. Switching
to Intel mode the login works as it should. I'm able to run this way for
now, but it's a show stopper issue for the average user.

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https://bugs.launchpad.net/bugs/1419507

Title:
  gpu-manager writes wrong driver in xorg.conf fro nvidia-prime

Status in ubuntu-drivers-common package in Ubuntu:
  Invalid
Status in xserver-xorg-video-intel package in Ubuntu:
  Confirmed

Bug description:
  The driver for the intel part of xorg.conf should be modesetting
  instead of intel, see also: https://askubuntu.com/questions/580693
  /black-screen-when-in-nvidia-mode-after-updating-to-kernel-3-13-0-45

  From what I can see this is set here: http://bazaar.launchpad.net
  /~ubuntu-branches/ubuntu/trusty/ubuntu-drivers-common/trusty-
  proposed/view/head:/share/hybrid/gpu-manager.c#L1588

  I am seeing this on a trusty system with nvidia-346 driver on both
  3.16 and 3.13 kernels.

  The end result of doing this worng is that system boots up with black
  screen.

  As a workaround I have commented out gpu-manager in /etc/init/gpu-
  manager.conf (when starting lightdm) and in /sbin/prime-switch (when
  stopping lightdm).

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