@Moldova - You do make a good point, but I think that the best case for living in on campus housing has to be the sense of community. When you live on campus you feel that you are more connected to the school and therefore will probably participate in more school functions and get more out of the school experience than a commuter would.
I always wished that I had lived on campus, but I didn’t. I commuted to school every day and often wondered what I missed out on by doing that.
Also, if you live on campus you could probably find a job on campus that will offset the cost of your education or give you some spending money and since you already live on campus it could not be anymore convenient.