Having lived in Byron Bay for 9 years, I feel I should add something to this... when people say it's hippy central, they're not lying. There are hippies everywhere. The weekend markets are run by hippies, hippies are always on the streets, the beaches, everywhere. That said, it's a very nice place to live. When the surf is good it's good, but remember it's not like that all the time.
It's also an expensive place to live. I assume you'll have on-campus accomodation, so that would be alright, but to rent a house: well, for example, we still own our house down there (moved to Brisbane a few years back), and to rent it (it's not right in town so much as just on the edge of town, a little way out), is $400/wk.
I don't know what the education is like, I only ever attended primary school down there, not even sure where any higher education facility is.
Transport has to be a factor unless you intend to spend all your time in Byron. If you're staying in town the beach should be within walking distance. Basically all your necessities (supermarket, fast food (though no major chains), surf gear etc.) are on one street, or there are lots of surf stores directly off the main street. But if you want to travel around, which you probably will, to say Ballina, Lismore and whatnot you'll need a car. With roof racks. The surf in Ballina can occasionally be a lot better than what's in Byron that day and the whole area around the place is worth checking out.
Anyway, that's enough from me. The essentials, Byron is a nice place to live, lots of hippies, worth having a car for surrounding areas. Good luck with whatever you decide.