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it is a littel bit complicated as I have kept my driving license in my home state. In such a situation, shall I still fill in my term address?

-Yes, you need to use your address in your school unless your school and your home address are in the same state because the law requires you have to live in the state where you file N-400 for at least three months just before you file N-400. You have been living in the school for a while, not in your home address, so you can not use the home address. Of course, if your school and your home are in the same state, then you can use either school address or your home address.