+1 on everything you said. I couldn't have made it through many impoverished years of college and grad school without a bike.
Anyone worried about maintenance and repair costs should check to see if their school has a bike co-op or student shop. Some do, and will let you have access to their tools for a nominal fee.
Student commuters should get a formidable lock or ride the crappiest bike they can find. Universities are often prime targets for bike thieves.