Why? I think schools are better sticking to their main raison d'etre though I agree that it is probably not suitable to have them run by profit-making landlords (though most students living off-campus and not at home DO pay rent to commercial landlords of one sort or another); I think student residences should probably be run by non-profit corporations - possibly partly owned by the school - who might provide 'services' like 'floor fellows' and gain some expertise in running residential accommodation... Student residences should not be privately run, they should be run by the school.
Can you expand upon "no demonstrated demand"? Not sure what you mean exactly by that.
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I will reserve my judgement, but the general gist of my thoughts on this are laughable site design, absolutely no basis for parking standard and no demonstrated demand for what would be in effect a vertical slum.
absolutely no basis for parking standard