Wife and I splurged a little bit on our apartment, not for a fancy place, but to live closer to the school. The first two years of school aren't easy, and I think having your own space is worth it. That said, you could also sign a year long lease with the goal of finding a classmate that you like as a future roommate. It's nice to have a study buddy, and somebody that is going through the same difficult path as you.
I said it in another post, but another option is to not splurge on the brand new place, but spend the extra money to get your own place. My wife preferred studying at the school, so she was barely home the first year anyways.