In the twenty-first century, global warming has become one of the severe challenges. Around one-fourth of the total carbon footprint is contributed by transport vehicles. It is crucial to provide alternative solutions to unsustainable transportation systems. This study compares the present travel modes of students of the Capital University of Science and Technology, Islamabad, with the proposed sustainable travel mode. A campus survey (N = 565) was conducted to understand travel choices, travel times, origin and destinations, and student preferences, considering university buses and private vehicles. A comparison was made between the travel time analysis of university bus users and non-bus users. A sustainability analysis has been conducted to evaluate the effects of the present travel modes on students and the proposed university bus transport system. Five main factors were compared: fuel consumption and associated fuel costs, carbon and vehicular emissions, traffic noise pollution, traffic congestion, and accident ratio. The results show that 38% of students commute by private cars and 18% by motorbikes. Around 25% of the students avoid university buses due to long travel times, and 30% prefer because their parents ask them. On average, university buses take 56.8 min, and non-bus transports take 38.8 min for one-way travel. If all students travel by university busses, they could be 86% more sustainable in fuel costs and carbon emissions than non-bus travel modes. These results give useful policy implications for providing sustainable travel alternatives to educational institutions.