I can assure you we don't put our lives on the line.
Personally I don't think it takes lots of guts more confidence in your own abilitys.
There is not alot a student can do to the machine without going into usual attitudes that an instructor won't be able to sort without much stress. The scaryest thing a student can do is freeze on the controls and lock up. It happens very rarely though.
When I say instructor I mean one with more than 500 hours instructing. You just about have the basics by then over 750 you know what you are doing but usually by then you have got pissed off with the whole of the flight training industry you turn into a bit of a bitter and twisted instructor.