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Chapel Hill/Carrboro has an excellent bus system so living close enough to campus to walk isn't a necessary requirement.
When I was in grad school at UNC (93-97), I lived in Berkshire Manor apartments in Carroboro. It's an older complex but it was kept in good shape and safety was never an issue. It is conveniently located across from Carrboro Plaza, which has a laundrymat, grocery store, video store, drug store, bank, and a few places to eat, and a major bus stop, so you can easily manage without a car. It's also close enough to bike to UNC in about 10 minutes or walk in about 30 minutes. Also a short 10 minute walk to the Carrboro farmers market, Weaver St. market, etc.
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