My read:
As a former UCSD student, I can say with some certainty that housing is the biggest non-fee expense for students.
So much so, I believe it actually dissuades some students from going there.
Unless you have a car, it can be tough.
(EG: The house that me, Rich and 4826 Monongahela used to live in. More burned spoons than I have ever seen in one place.)
You have to live nearby or near a bus line or have a car.
With a trolley line, you could live in east El Cajon.
Hell, you could live in TJ.
I think this will be a huge net positive for the school and by extension the University City area.
Honestly, UTC would be pretty irrelevant without a major university next door.
So those things go together.