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I drive from Butler to Covington each day. It is true that the traffic on US 27 is pretty heavy during rush hour, especially through Highland Heights, Cold Spring, and Alexandria. Lots of stoplights. And the drive is terrible when the weather is bad - this winter was the worst. However, once you get south of Alexandria, the traffic thins out. It is also true that Butler is a very reasonable place to live pricewise.
If it were me, I would concentrate on the Cold Spring/Highland Heights/Wilder area. There are a lot of condos as well as apartments in these areas. Highland Heights has older, smaller homes which can be quite reasonable to rent or buy. You should check with NKU - they will have some idea of which apartment complexes are student-friendly and have reasonable rates.
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