I grew up in a university town and of those who went to college, many went to the local school and lived at home. I happened to live in the dorm one semester because my parents moved. Most of my town friends hung out at the school a lot, eating in the Student Union, playing foosball, attending events. Usually not as freshmen, but often as sophomores or later, they moved into apartments near campus so did have the ‘college experience.’ A few joined fraternities. I think everyone was pretty much a college student, not just a commuter.
One guy I knew (because he was in my older sister’s class) was involved in student government and president of a few clubs. Kids who went to other universities often took summer courses at the local school.