The Holiday Inn Express is nice, that is where I stayed. It is pretty close to the dental school, it is about a 5 minute taxi drive. The one I am talking about is right across the street from the football stadium.
And if you tell them you are interviewing at IU they give you a discount as well. So it comes out to be really really cheap. Plus they serve breakfast in the morning for free.
This has been quite the advertisement I have written here!!