The Ramada Inn in East Lansing is only a few miles away and is nice and reasonably priced. The Kellogg Hotel is actually ON campus, but will be more expensive and is across the campus from Fee Hall. I second the Townplace suites are also pretty much ON campus, and very nice, if they still have the middle eastern resturant in the little strip mall near it check it out, its pretty good.
wisconsinmilf is right about the car. The airport is fairly far away, and except for the "pleasure" of having to park on campus for your interview, it would be a better choice than a taxi.