Hello.
It means the following: Akzhan used to study in city. So, now she doesn`t study there.
And "оқитын" is not short form of "оқып тұрады".
You can say like these: Ақжан анда-санда кітап оқып тұрады = Akzhan sometimes read books.
But you can say like these: Ақжан анда-санда кітап оқып тұратын = Akzhan used to read books sometimes.