True. HOWEVER.... does this college receive any federal funding? That changes the equation back again.
From a different point of view... if the college is 100% privately funded, and this student is paying tuition -- then the analogy should be more along the lines of a business not giving adequate value of service. I actually used a similar argument in college, when complaining to the head of the department against a particular professor. I told him, "I'm paying a great deal of money to come here." [Unlike most of the free-ride students, I was paying my own way.] "I expect a certain quality of service in return, and I'm not getting it with the agenda of this teacher." As you can imagine, it was as if I was speaking Martian to him.
Now, how did I know you were going to bring this up?
I say this "federal funding" excuse should go away unless it can be shown that, in this case for example, the funding is being used to suppress speech.