This is a classic example of rules-based moronic thinking.
Dorm = college = government funding
Bible studies = religion
Govt funding cannot support religion.
Wherever religion even touches government in some tangential way - this will come up.
The 1st Amendment forbids Congress from passing any laws that have anything to do with (that's the meaning of "respecting") an establishment of religion, or laws that abridge the free exercise of religion. Laws passed by Congress can neither establish nor forbid an establishment of religion.
Therefore, any law Congress passes that violates the establishment and/or free exercise cluases is in violation of the Constitution. That means that laws establishing and/or funding any organization cannot cause that organization to violate those two concepts.
That further means that the laws are unconstitutional, not the practices that are claimed to be forbidden in those organizations. Such laws are the ones that funds schools and universities, and laws that establish corporations for purposes of the Internal Revenue Code.
Fat chance turning the courts around to recognize this, though.