[Tigereyes]

It depends on a lot. You should do what you think would be best for you. I had to pay for housing because my school was hours away. Lived in a dorm first year, then got apartment with friends. I preferred that.
A couple things to consider though:
-Is it mostly a commuter school? Mine was, defeating the purpose of living on campus. If not, might be good to be on campus during weekends for events and clubs.
-Meal plans are often required (and especially expensive for freshmen). Does this make sense for your dietary needs?
-Cost of dorms; I lived 3 hr away from my parents, so I had to pay for housing. Apartment with friends ended up being cheaper, bigger, and nicer than tiny dorm.
-Parking pass; commuter passes are usually cheaper.
-The feeling of being at school all the time; might promote studying, it made me feel like I could never get away from school.
-Convience; dining halls have food readily available, everything is right there on campus. One of the things I missed most.