C172 flight Instructor reported student loss of control on landing which resulted in runway excursion and contact with a runway edge light.

Narrative

The student pilot had not flown in 6 months and wanted to get back into flying. The flight took off from ZZZ and into the local practice areas before flying to ZZZ1. The runway used was XX. The first approach was high; so a go-around was performed. The second approach looked better and everything looked good until the student leveled off too early and started to flare. The student realized the plane was too high and dipped the nose down. The plane landed hard on the nose and main gear and bounced. The plane bounced again when I told the student to go around. The student added power and immediately took it out when the plane started to veer to the left. The aircraft hit a runway edge light before stopping on the side of the runway. The student told me afterward that they panicked and took out the power because they thought of a video of a plane crashing into a hangar they had seen earlier. They thought that would happen if they left the power in. No injuries to the persons involved. No damage to the plane.