Kenny, I would definitely go with a website rather than a print publication. To get links to your site, contact the very businesses you want as advertisers since many of them will have websites. You can build links and advertisers at the same time!

Your idea has a lot of merit. A business that advertises in the same publication which contains an article about them usually gets much better results from their ad.

With a website, you can offer your advertiser a full-color, full page ad that they wouldn't be able to afford in print.

Adding a blog or a message board (or both) to your site are worth considering, especially given your market.

Another way to encourage word-of-mouth for your website is to include news and photos of college-related events. Contact fraternities, sororities, and other organizations on campus for news. In other words, you could make your site not only for them, but about them.

You could probably find some students who would be willing to provide interesting content for nothing but the glory.

Most likely, the students themselves will be a willing and volunteer "marketing team" for your website.

Nancy
http://www.CreateYourMarket.com
Cheap Advertising Ideas