Sounds a bit like all the St Brat's colleges we have within our universities - also the domain of the wealthy and well connected.
I lived at a college at Melbourne University for two years, as did my 3 siblings, and we are not wealthy or well connected. My family lived in the country 350km away, going to university meant we had to move away from home. As far as my parents were concerned having us live on campus was the most sensible option, all our meals were taken care of, we could get to classes easily, plus we didn't pay during holidays when we would go home anyway, so it's not like having to pay rent on a share house for a year.
Unfortunately in my case it didn't work out so well and I spent most of the two years in a drunken stupor... but it worked for lots of other kids.