I've not enjoyed hostel life, but I have been to my institutes hostels and made many great friends there.
People come from all over India, have different values and different backgrounds, different language and catch phrases and you get a mixture of all of it there.
I did not know what "Vella" meant, but now I know half of Delhi uses it. Half our college also started using it later on. We had pet names for everyone according to his traits and everyone was comfortable with whats said in the hostel stays in the hostel.
You are away from your family who is willing to do with most of your BS. Your room mate wont take any of that and will tell you the way he sees it. Ofcourse, everything has two sides and there are good chances of you catching up on bad habits with bad company. You may also completely loose your self esteem if you are the one that bears the brunt of all your colleagues. To each, his own !!