A college town with 40,000 students, Bloomington is located in south central Indiana. It's a typical Midwestern university city, bustling with frequent festivals, sporting events and concerts. The flagship campus of Indiana University is here, which is unusually beautiful. With a lower cost of living, plenty of art galleries, and a music arts center, there's plenty to like about Bloomington. Aerial photo courtesy of EMcCutchan and Wikipedia. Photo of Lilly Library on campus of Indiana University thanks to Vmenkov and Wikipedia.