I know you posted this awhile ago, but I figured I'd respond since no one else has:
I lived in Kingston for awhile, and was advised not to live in the "student ghetto". Basically, most of the houses surrounding the university are inhabited by undergrads, so if you're not interested in living in a party house, I would advise you to get an apartment a little further away. The cost for rent isn't bad (about $500-$600/month), but if you opt to live "downtown" (on Princess Street), rent can be a lot more. There are some nice apartments located above restaurants, yoga studios, clothing stores, etc. in Kingston.
Student life is buzzing all year round, even in the summer. I would consider it a "party school", as I was awoken by rowdy undergrads on a regular basis (which is why I'd suggest not living too close to campus if that's not your scene).
Queen's is walking distance to downtown Kingston, and it's really close to the water. There are TONS of restaurants in Kingston, which I really enjoyed. There are also little shops on Princess Street. Overall, it's a great place to live, despite it being super far from other major cities.