Fellow poster John Hein and myself do shows at a place called the Metal Frat in Ann Arbor. The Metal Frat is an actual frat house, and home to nearly 20 people. We do free parties/shows nearly every weekend during the school year and shows all summer long. Some of the shows this summer have been the best I've ever been to. Imagine a basement that can hold up to 200 people, lined with couches on the walls. Shows are cheap (5$ or free), we often have vegan potlucks, offer bands a place to stay, etc. Some of the bands that have played this summer include: Downpresser, Creatures, Withdrawal, Make Do And Mend, Hostage Calm, Black Teeth, Rattletooth, Decades, Beartrap, A Loss For Words, Transit, and Face Reality. Shows here are attended by a large portion of the hardcore scene in Southeast Michigan (usually between 75-100 people). Good people, a close community, and great local bands.
John and I are also students at U of M, and play in a band called Dire Wolf. Our band is the only Ann Arbor band that I really know of, but there's several good bands in the metro Detroit area.
If you have any questions about the school or Ann Arbor in general let me know, and I'd be happy to answer them.