Research on studentification has unpacked the spatial, economic, and social impacts that are associated with the growing presence of students in cities. Nonetheless, considerably less attention has been paid to the broader regional and national contexts that shape studentification. Using the case study of Ben‐Gurion University of the Negev, Beersheba, we argue that the studentification of the city should be understood within its context as the periphery of the country. Despite the university's central location and its involvement in revitalization efforts in the region, Ben‐Gurion University is surrounded by marginalized neighborhoods which have turned into a ``student bubble''. We show that the segregation between the campus and the city results from a vicious cycle that reproduces the city's poor image and disrupts the university's attempts to advance the city and region. Although overlooked by policy‐makers, the implications of this cycle reach far beyond the campus' surrounding and affect the city and to some extent the whole region.