Enschede is broken up into five regions, the Centrum, North, East, South and West. Students live especially in the Centrum, in Twekkelerveld (=North) or in Pathmos (=West). It takes roughly 15 to 20 minutes to bike to the University. This is a good method to assess how far a student house is from the University or from the Centrum.
Many students at the University and at the Hogeschool live in the city. Generally, 4 to 6 students live in the student houses in the city. Some houses and flats have similar rooms, but most don't. The rooms can vary greatly in location, size, comfort and price.
One of the differences between living in the city and on campus is that in the city you will have neighbors of all types, whereas on campus most, if not all, of your neighbors will be students.
Many students find it advantageous to be able to bike home in a short time after going out. Most of the student houses lie within 5 minutes biking from the Centrum. Therefore, going out can be easy in the 'best student city in Holland.' Around the Oude Markt you will find many café's where you can go out (and sit at one of the lovely terraces in the warmer weather).
One possible disadvantage in living in the city is that you are farther from the campus. It will take you 15 to 20 minutes to bike from the Centrum to the campus. If you don't wish to bike, you can always take the bus, which is very well connected and travels throughout the entire campus.