The neighbors function works by geocoding all the addresses, and the address of the school.
You can enter a distance from your house, and it should give you all of the people that live within that distance, however, it limits it to the first 50 it finds.
Typically, if you live in a relatively dense area, such as a town, you have to make the distance from your house pretty small. For example, using .05 or .09 miles as the distance is a good starting distance. Then you can increase this distance (radius) and try again until you get to either the number of neighbors, or the distance from your house, that you want.