Dorms and car hands down. Save your money now while you can. Dorms will mean an easier commute and closer to on-campus activities, too. A car will be essential for work, etc. later and it will be a real blessing not to have a car payment. No matter where you live, you can hang out with your friends, but I wouldn't give up a car and savings just to live under their roof. Also, you may make new friends in the dorms.