LAB 4.1 - SELinux logs

Hello everyone,
I've managed to do the lab exercise, however I have a question concerning SELinux.
By default, SELinux was disabled on my VM so I've changed enforce mode to Permissive (by editing /etc/sysconfig/selinux file), rebooted and changed root password again, just to see what would happen. After reboot, the password was successfully updated but I couldn't find any SELinux reports. I've checked with getenforce and SELinux is indeed in Permissive mode.
Next, I try setting SELinux to Enforcing mode and either I don't get the login prompt for student, either it doesn't accept the password. So, I guess SELinux is working (?)
Why don't I get any warning messages when in Permissive mode ?
In /var/log/messages I get messages like:

Jun 10 09:38:26 second kernel: SELinux:  Initializing.
Jun 10 09:38:26 second systemd[1]: systemd 219 running in system mode. (+PAM +AUDIT +SELINUX +IMA -APPARMOR +SMACK +SYSVINIT +UTMP +LIBCRYPTSETUP +GCRYPT +GNUTLS +ACL +XZ +LZ4 -SECCOMP +BLKID +ELFUTILS +KMOD +IDN)
Jun 10 09:38:27 second systemd[1]: Successfully loaded SELinux policy in 137.817ms.
Jun 10 09:38:27 second systemd: systemd 219 running in system mode. (+PAM +AUDIT +SELINUX +IMA -APPARMOR +SMACK +SYSVINIT +UTMP +LIBCRYPTSETUP +GCRYPT +GNUTLS +ACL +XZ +LZ4 -SECCOMP +BLKID +ELFUTILS +KMOD +IDN)

/var/log/audit is empty and /var/log/avc* doesn't exist...