So from the replies I'm getting the sense that single-person apartments need to be the default, with the option to join two units together (maybe through a connecting door) to acommodate couples and even families.
A good mix of people, not necessarily doing the same thing, would be good for social variety. Collaborative projects would take the edge off some of the competitiveness. At the same time not every artist should be involved in the same project, to prevent too much groupthink.
Classes won't be traditional lecture-type classes, but more like guided study-circles where everyone helps each other to some extent and a few people stand several levels above everyone else and play the role of traditional teachers.
Some sort of probation period ought to be in place so people can get a feel for each other and leave early on with a minimum of drama and financial risk. And in general everyone's asses ought to be covered, legally-speaking , so that when they do sign up they can look forward to nothing but good things.
I should point out that this is pushing the idea closer to being a school. Not every college student takes up the same course, so they're charged different rates. Some students enjoy scholarships, some live on-campus, and some do both. Some students also teach or do original work on the grounds. Universities have done a good job of making all these things work together.