Great questions re: rent.
Most students can find apartments by looking at http://ottawa.en.craigslist.ca/apa/ or ottawa.kijiji.ca. Those are the two main web sites where apartments in Ottawa are listed.
Rent varies a bit in Ottawa depending where in the city you want to live. Rent prices tend to go up a bit just before school begins because the demand is higher. Algonquin College is not near the city center and I never lived out that way, but I remember seeing monthly rent at around $750 per month for one-bedroom apartments. Public transportation (called OC Transpo) is a bit expensive, but there are routes around Algonquin College to take you wherever you need to go if you live farther away from the college. You will want to talk to someone at Algonquin College about whether they still have access to the OC Transpo Student Pass; that is by far the cheapest option for you.
If you decide to live with other students, the costs can be reduced even further. It is not uncommon for 2-bedroom apartments to rent for $1,100, 3-bedroom apartments to rent for $1,300 and so on. One year I rented a house in the downtown "Centreville" neighborhood with 4 other people (students and professionals) and my rent was $350 per month.
If you have any other questions, I'd be happy to try and answer!