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If a YA has enough money, and you place an empty lot in the neighborhood, the YA can move in and build normally. Once that YA moves back to the hood, though, he can't go back, and non-YAs can't visit University hoods unless invited to visit or on an outing/date with a YA.
To build a dorm, it's necessary to build it as a residential lot, then change the lot zoning. It is a very bad idea to change the lot zoning of an inhabited lot. Therefore, you could have someone build a lot while he was residing there, in the usual way; but he'd have to move out before it could become a dorm.
Ugly is in the heart of the beholder.
(My simblr is
Sim Media Res .
Widespot,
Widespot RFD: The Subhood, and
Land Grant University are all available here. In case you care.)