Yes, it's called an off-campus apartment. Students have been drinking in them for centuries.
America's pathologies around student drinking are ridiculous. But let's not pretend like the path of least resistance doesn't already exist, and isn't in wide application by just about every other college in this country. The only reason we're talking about Stanford is because it hits all of the culture war hot-topic buttons (elite college, bureaucracy, "coddling," &c.). Nothing about the actual state of affairs is remotely unusual or controversial.