If you can use Python / arcpy little bit, it could be possible to make iterative selection on points (students) by the college that they are studiing with selected currnet college (I assume it is another shp with colleges).
Then use Near tool to find distances.
After that, new selection for next college and so on.
I suppose that both shapefiles (colleges and students) has filed with colleges names that has the same name in both shp.
I didn't test this script, but I could wotk that way.
# Set workspace
arcpy.env.workspace = r"path_to_workspace"
# Set variables
college_shape = "layer_with_colleges.shp"
student_shape = "layer_with_students.shp"
# Create cursor to find college names
field = "name_of_field" # field in attribute table with colleges
cursor = arcpy.da.SearchCursor(college_shape, [field])
for row in cursor:
sql = '"' + field + '" = ' + row # make sql
# Select college fit specific name
arcpy.SelectLayerByAttribute_management(college_shape, "NEW_SELECTION", sql)
# Select students with specific college
arcpy.SelectLayerByAttribute_management(student_shape, "NEW_SELECTION", sql)
# Run Near tool