They keep their keep the drivers license and license plate of their home state and they pay out of state tuition. Even if they live in a state for 4 years while going to school they are not considered residents and do not get to vote or receive in state tuition. There are things they can do like buy property that changes that but other wise they are guest. Why should nonresidents vote in local elections? They are still allowed vote in their home state.
Same is true for the military by the way. I lived in north Carolina for three years and I never carried a North Carolina drivers license paid their income tax or voted in their elections. My wife did though because she was considered a resident.
I would have to double check Michigan's university rules, but I believe here a full time student pays in state tuition costs after having an in state address for one year. The one year wait is due to the assumption that the individual will be paying state taxes since he or she is living here and probably working here as well while going to school. Been a while since I was in school and I frankly don't care enough to look it up and verify how it works but I think that was the way it worked last I knew. But my point is still the same, if I'm going to be living in a state while going to school then why wouldn't I just get a darned ID and establish residency? For military personnel, I could definitely understand the reasoning for not changing residency, but for a student it would be highly beneficial due to the super high non-resident tuition rates. Overall, I just find the whole "why won't they take a student ID" argument to be retarded. Heck, I don't think my university ID even had a birth date, address or anything on it except my picture and student ID number.
-Brandon Sanderson, The Way of Kings