Well, as CIAO stated, the bedroom is too small and he/she is going back to school in a month. What then?!?!?!?!

Let the pup get used to spending the night with them and then suddenly, they are off back to school and she's left all alone again and totally not used to spending the night alone.

There is no reason why any dog shouldn't be able to get used to spending the night in it's own space.

All the dozens of dogs we've had have never slept with us and they haven't had a problem with that.
Also, it is well known that dogs who are allowed to spend too much time with their owners are more likely to get seperation anxiety. No point in doing something that could cause this and waiting for it to develop and then have to try and reverse it afterwards.

John Fisher used to always ask these questions to owners who's dogs had seperation anxiety:

Does the dog follow you from room to room?
Does it sleep in the bedroom?
Does it try and get into the loo with you?
Does it scratch or cry and howl when doors are accidentally shut on it?
Is it always flopped down at your feet whenever you sit down, usually with one paw over your feet, or does it insist on sitting on your lap?

He asked these questions for a reason. He commented that if the answer to any of these was correct, then he knew it was an over-attached relationship and the dog can't stand to be left on it's own.

He goes on to say: Obviously, if the dog cannot be left in a room on it's own when the owner is in the house, there is no chance of leaving in the house on it's own. Significantly more time should be spent with the dog in one room and the owner in another - starting with periods of time that can be counted in seconds, leading to far longer periods, to the point where the dog can be shut out of the bedroom at night without it causing a problem.

Funny how he commented so much about dogs with seperation anxiety sleeping in the bedroom with their owners.