Don't know anything about the university, but know a bit about Iceland. Don't get into the frame of mind that you are going to another country eg loads and loads of exciting places to go, things to see etc. Think of it more as going to one, relatively small town. Unless you are into geological formations, geysirs, volcanoes etc, then everything happens in Reykjavik which in our terms is a very small place. Icelanders are generally friendly, very, very keen on partying, there are quite a good selection of clubs/bars/music etc in Reykjavik. They are also very into art, so plenty of galleries.
Prices are another matter - think of the highest British Rail/Central London price for something, then double it - you you can easily pay a fiver for a sandwich or a coffee.
What you will get weather-wise depends on when you are going, freezing winter of blazing sunshine, but it is one of those places that usually has all four seasons in one day.
Icelandic is a fearsomely complicated language to learn because they decline everything, even 'the', so I'd stick with just picking up a few words for politeness. Most Icelanders speak beautiful English anyway.