most students(and alot of them at that) use bus eireann going to/from limerick to waterford.
up to recently the train was €1.50 cheaper than the bus
the train takes 2 hours 30 mins which includes half hour stop over at the junction
the bus takes 2 hours 25 mins
so even though there is a stop over the train is a better choice.
the trains are competing with bus eireann. not private bus companies. bus eireann yes drops at the college(sometimes) but a lot of students also live in town so a train would be ideal.
trains without adverts gets no passengers