Colleges are not like high schools. They are no longer acting in loco parentis. That went away with student sit-ins in the 60's. Nowadays, colleges just let kids do their own things, for the most part, and it seems it is rare for a college to actually kick anyone out for anything other than not meeting a minimum required GPA.
Maybe his parents money was all the school really cares about. Paying tuition is all that matters.