It is very important to have students sign a form for the equipment received. You can design a simple form on Microsoft Access, which in turn can automatically keep the information in a database. Try to collect current student contact information at the time, you loan the equipment. The database can run report and reminders of when to contact the students back to return the equipment.

I agree with Lana, but I would also add that maybe those students who do not return the equipment will be "penalized" for it. For example, if you could add (on the contract you create with them) that their final evaluations/grades will be given or recorded only after the fact that they properly returned the equipment. If a student does not the institution or you will respond by holding their final evaluation from them. I would also add the price tag on the piece(s) of equipment. That will result in more obvious consequences and thus, prevent any foul play or forgetfulness on student part.