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as a foreign student, I guess you'll be placed in courses which are solely taught in Spanish. I suppose you already know that Bilbao is in the Basque Country, where the local language, Basque, is also official, as well as Spanish. Basque is the oldest etnicity in Europe, along with their language, which is it unrelated to any other ones (either Germanic or Latin -French, Spanish, Italian- languages) and helluva difficult to learn.
Bilbao was always an industrial city, with some big working-class neighborhoods, but in recent year it's getting that chic environment of other places, although not as much as San Sabestian, which is also in the Basque Country and really beautiful.
Other places? You can always choose Barcelona, Madrid or Sevilla, but they are maybe too big and crowded with tourists. Traditionally, there are 3 classic college towns in Spain: Santiago, Salamanca and Granada. I'd choose any of them over Bilbao, because they are the kind of cities I grew up in, with a lot of students, nightlife, etc.
I dunno where you come from, but Spain has the best nightlife you can find in all over Europe. Be ready to start partying at 11 pm or midnight, drinking and socializing with thousands of other students in public parks, and then hang around the numerous pubs and clubs until 7 am or so.
If you have any other questions, send a PM my way and I'll give you some other hints.
I hope this helps.
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