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If you are new to Chandigarh then take hostel for first year to get idea about the new place. After first year you can take PG or flat for rent near college as it will be easy to you for travelling to college.
Flats will be better option than PG because pg near college are not so good some of them are worse than hostel. You can easily get flats near to college with good facilities.It will be little bit expensive but if you move with 2–3 of your friends then it will not cost you more. (As per personal experience)