There is only one FBO at Lafayette/Purdue University Airport(LAF) - Lafayette Aviation (
www.lafayetteaviation.com). Usually the instructors there are a pretty good. In four years of dealing with them I found the service to be ok but not great - and they're a little on the expensive side. If you're looking for a cheaper way to go check out the Purdue Pilots flying club - don't know the website - it is a university sanctioned stuent organization that has 3 Warriors and a really nice Archer(as of a few years ago) -the planes are cheaper than the FBO and it's not as expensive to join as most flying clubs. I believe they are using Lafayette Aviation instructors still.
As far as living on campus - no big deal there - it's not far from campus and all of your aviation classes will be at the Aviation Technology Building at the airport anyway.
As far as time - I personally wouldn't recommned triing to learn how to fly your first semester. You're going to be busy with classes and adjusting to the college enviornment and that should take precedence. Wait until your second semester(or at least halfway thru the first semester) before you start flying to give you time to get a grasp on things.
You can get some credit for flying - when I went I got (if I remember correctly) 6 hours of credit for having my PPL (I went thru the flight program) but it would all depend on wether or not the Aviation Management curriculum/advisors allow you to use the flight courses as electives for the management degree and I believe they will.
Jason