Law is like jello, It bends with the argument and with the interpretation and application.

The first misconception is that you can declare a property headed onto the market only S8 eligible, refusing to consider traditional applicants.

Maybe it's a processing fee, an application fee, etc?  

The lender wont give you anything that says the due on sale clause is not applicable. 

Pick a screening platform/application that makes sense for you.As for meeting the applicants, I recommend meeting them at the property to show the place to them rather than getting coffee or food with them.

Your comments are misguided, too specific to only one of your clients, not applicable to general investors and therefore not worth responding to. 

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

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Some carriers don't ask but you should make sure that you're not indicating (in the policy application that is typically e-signed) that you aren't using your property for student housing if you are.  

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