Based on what I hear, shifting it to online won't change the listening habits of students. The medium isn't the reason they don't listen. This radio station, for better or worse, is has become more of a community station. It mainly plays music chosen by mostly non-student volunteer hosts. They have their own agendas, and not all of them are in line with those of the students. That's the state of college radio today. They can't get enough students to host shows.
Seems to me, earlier this year, the university had a house-cleaning of the non-student hosts. At that time, questions were asked about the role of the station within the university.
This university, like many in this country, is shifting its focus away from serving the broader community towards concentrating on their students and alumni. In the Buffalo group, it was just reported that the University of Buffalo is looking to move operations of their NPR affiliate, WBFO, to a community licensee that also owns the city's PBS station.
One downside to online distribution is the requirement to pay music royalties. They only pay publishing royalties on air, but must pay publishing and performer royalties online. That's why some colleges haven't gone that route. But apparently, the station is already streaming, so they know the costs involved.
But I believe that moving the station from on air to online in order to reach more students is ignoring the primary problem.