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Do students HAVE to live on a university campus their first year?

Okay so I live in an apartment with my cousin and I’m planning to transfer from community college to a university. Im graduating in May to get my associates degree! I’m planning to get my bachelors degree. So would I have to move out of my apartment to live in a dorm because I am cry confused! I looked up some information for some people it said that some universities require first year students and freshman to live in a dorm room. I’ll be young enough since I am only 20. Can’t imagine a 25 or 30 year old living in a dorm room. I’ll be a 20 year old freshman. Embarrassing.
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The Associate's Degree covers the first two years; you'll be a "transfer student", entering as a junior who is new to the school, but not a freshman. (And congratulations on that accomplishment!)

As you are well aware, the community/junior college is meant to serve people, in part, by providing a more convenient, affordable way to pay for college, since you are getting the first two years of college at quite reduced prices. This typically gets you over the set of university-wide requirements for a Bachelor's Degree; the school you choose for pursuing your last two years may have a few other courses, but you should be able to concentrate on your major(s).

As for housing, the freshman requirement is meant, in part, to help you acclimate to college *together*, with your classmates (similar to how Kindergarten used to help acclimate young children to school, with their own classmates). New students get to go through the transition to college, together.

The other part of this is that most universities have the notion of the value of "residential education"; since college is about growing your mind, the value of being around others not merely in class, but "at home", too, not only helps you all get your homework & projects done, but it also encourages further discussion of lectures as well as sharing from a wider variety of backgrounds. ALL of those enhance your experience, and can help you form long-lasting friendships & *networks* which can help you.

It isn't a punishment.

BUT...you need to find out about TRANSFER student requirements, including talking with the Transfer Credit people, to see how they feel about your specific community college, and what university requirements you'll have to fulfill, etc.

The application is different, the process is different.