You can require students to enter individual passwords before being able to checkout and return.

If you want your students to enter a unique password when accessing the account to check-out or return, you will need to turn on the Require Students to Enter Password. This can be found under the Settings->Preferences page 

Your students will then login to the website using your Classroom ID and Classroom Password first. Then they can select themselves from the student side of the library. After they have selected their name from the list of students, they will be prompted to enter their personal passwords before they can checkout and return.

A password is automatically created upon adding a new student. The system will default to the password "thesource" unless changed on the student profile.

If you do not wish to use student passwords simply leave the box unchecked.