Students at Falmouth University will have a dedicated bus service between Penryn Campus and Falmouth from September 29.
The new U1 service from First runs every 15 minutes between the Penryn and Falmouth campuses, via Penryn and Falmouth town, from Monday to Friday during term time.
A single fare will cost 80p when customers show valid Falmouth University or University of Exeter student or staff ID. This 80p flat fare is also valid for students and staff on Firsts service 41 and 88 services when the U1 is not running.
The U1 service includes late night buses on Thursday and Friday.
Alex Carter, MD of First South West, said: "Our services 41 and 88 are extremely popular, and we wanted to ensure that regular customers get the best possible service, while offering something special for students. We think the new U1 will allow us to do just that.
"Were very grateful to Falmouth University and the University of Exeter for their contribution towards keeping the fare so low. At just 80p for a single journey for students and staff, the U1 really is the best way to get into town, day and night. We have also got some great deals on our U1 evening tickets.
"The buses run up to 2.49am on Thursdays and Fridays and at just £3 return or £1.25 each for a group of four. It is a lot cheaper than a taxi.
"While the special fares apply to university students and staff only, anyone can use the U1, while the 41 and 88 will continue to offer customers their regular service, with plenty of space to welcome everyone on board.'