Rental Application - Tenant has collection!

[Sam Schlacter]

I got a tenant application today where the girl came to see the property and is interested to rent it. Her fiancé is right now out of town and could be back after about 20 days she said. She is supposed to be student. They asked for application which I sent and both filled it. She shows no income due to being "student" and her fiancé put down income of 75k/yr though I got the screening result for her but don't yet have access to his fiancé’s credit due to technical glitch in the screening service (smartmove) that they are fixing right now.

With that said, how can I make sure that she is indeed a student? (Credit report shows some debt as USDOE/GLELSI Employment but I don't know if it is student loan or what). Also, the scary part is that she has collection of almost 6k pending from collection agencies! (and about 7k debt). Should this be a HUGE red flag for me? I am still awaiting to access her fiancé’s credit screening result but if his income is as he claims it is and his credit is OK, should I ignore collection on the girl's account considering she is saying she has no income and he is gong to pay the rent? Or should I consider refusing her application based on these flags?

Please suggest based on your past experiences! :-) Also, if I am to refuse her, do I have to specify reason for refusal?