If you can live close enough to walk, it's definitely worth it. Bad neighborhoods are bad, but if all you do is walk to and from school, it won't affect you, and it'll keep your rent cheap.
Also, cars and buses are expensive (but that's what loans are for right...). Currently, I live a 30 minute drive away from school, but if I have an 8am class, that can easily be 1 hour+ due to traffic. My life is jumping in and out of HOV to remain inconspicuous and fine-free.