We had this issue a few years back in a local city - a mid-sized private college was running into zoning issues while developing property they owned for campus expansion. They encouraged all of the students to register locally, in the hopes that they would vote for a pro-university city council member to influence the rezoning issues.
The school was officially neutral on the candidates, and didn't actively campaign for the candidate at all, but the registration of the students was enough to influence the election, and change the zoning restrictions.
I'm of two minds on this issue. The students are living there for 4 years, and are residents of the local community. If you try to write restrictions to limit them from voting, you'll end up creating unintended consequences that prevent many of the more transient local citizens (renters, etc.) from voting.
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