Welcome to SW forums Nina
Have you completed the installation and activated your licenses. Are they Networking or standalone licenses?
Check this post for additional help: Link to contact student edition support for technical issues.
Also read this post for your future reference: Forum Posting
I am assuming that this is a network installation. If so the students must connect to the server.
Checking out licenses is not difficult. On every client computer with SolidWorks installed there is a SolidNetowrk License manager. This is what allows the students to use SolidWorks while they are on campus connected to the server. If they would like to borrow a license this is where they would do that as well. To acces this go to: start>all programs>solidworks 20xx>solidworks tools>solidnetwork license manager. The third tab in the license manager is the borrowing tab. You just select which licenses you want to borrow and for how long. There is a limit on borrowing licenses so not going to be able to let them have it for a year. Also when borrowing licenses you need to make sure you borrow the correct combination of licenses. For example to use SolidWorks premium you would need to borrow SolidWorks Standard and SolidWorks Premium you must borrow SolidWOrks Standard in addition to any other addin features you may use.
As Deepak has suggested contacting your support group (VAR) would be the first order of business. Whoever you bought the 500 licenses from should be more than happy to help you with any questions that you may have. License borrowing can get ugly when it is not regulated.