Personally, I would live in the suburbs. The commute from the city is not exactly short (about 35 min on a great day with no traffic). With the way the highways are around Chicago, you never know what you will find, especially on the 290. Anything can hold you up - from traffic to accidents to construction, you name it, it's there. And not to mention the weather - snow, ice and heavy rains will definitely slow you down. Having lived in the Windy City my whole life, I've gotten to know this place pretty well.
I would check the suburban newspapers for apartments in cities such LaGrange, Countryside, Brookfield to name a few and find out from the other students where they are living and compare notes.
However, if your heart is set on living in the city, then go for it. You have to go where your heart is otherwise you won't be happy. I think that living in the city would be doable, although not all that convenient, especially during your first 2 years.
Hope that helps.