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It really depends on the school. I go to Dickinson College, and for my first year (2005-2006) Live was basically unplayable due to the school's horrible network and network restrictions all but blocking Xbox Live.
Last year Live ran better, but my cable modem at home still provided a better connection. As for this coming year, the school's already upped their bandwidth, so I'm hoping it'll be better yet.
The moral of the story is, you'll find out how well it works during the first week of school. If at first it sucks, have faith your IT department will improve the internet enough to relieve the problem.
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