My experience with smoking hookah at college is much the same, when living in dorms we just went out to a common area and set it up and had fun talking and socializing. Anytime anyone would ask us what we were doing we'd fully explain what it was and offer for them to try, we even took a pack of shisha with us so that they could see the 'raw product'. since it's not illegal they really couldn't say anything. But it's safer to just carry it outside than risking burning the carpet or furniture. Plus depending on how much you smoke it can effect the walls with a lingering smoke kinda smell. If you don't live on campus check with your apt complex or landlord about their feelings about smoking inside, if the don't allow cigs just be curtious and take it outside. I would always pack my hookah up in a cardboard box and store it in my closet or on a shelf, most residence halls can't open boxes or anything that's closed, they can only look around on inspection; however if they have reason to suspect anything illegal and call the cops they can search anything. Just a word to the wise. Don't give them reason to suspect anything. But most RA's are forgiving if you explain to them, I got a few of mine to join me outside for a smoke. But school is a great place to got outside and sit and chill with your hookah and a few good friends.
Not to mention my college town has 2 hookah bars. But it's cheaper to smoke my own stuff.