That is one main reason why colleges like Grove City College in Pennsylvania and Hillsdale College in Michigan REFUSE to take any Federal money ( not even Federal tuition grants for their students ). The had the foresight to see Uncle Sam butting in on their autonomous affairs.
Grove City College (A Christian College) recently disciplined a Senior majoring in Molecular Biology for actually working as a porn star in violation of the school’s “morality clause”, which every student were required to adhere to.
Had this kid been a recipient of Federal aid or the college been a grantee of Federal aid, this would have been a public affair that would involve the courts in DC.
Sounds like a good move.