I took a course in Oxford, through U of T, in the summer of 2004 and accommodation was at St. Edward's School in north Oxford (Summertown). While St. Edward's wouldn't be an option for your friend I wanted you to know, based on my experience, that Summertown may provide more reasonably priced options than central Oxford. It is a short bus ride from city centre and the walk is easy. It might be worth checking for accommodation in this locale.

The Old Parsonage http://www.oxfordcity.co.uk/hotels/oldparsonage/ (half way between Summertown and Oxford city centre) may be too expensive accommodation-wise - but I'd recommend it highly for a meal, tea or a cocktail. We had a fabulous dinner there - memorable in many ways not least of which was the waiter's description of the family history of the Scottish cow that provided the steaks we ordered. We wondered afterwards whether the family tree dissertation was British flair or mad cow scare. Not sure that I've helped much.

Lesley Toronto, Canada