>>So much for freedom of association. The government gets to pick your friends and associates.<<
Vandy is not a government. However it is subsidized by taxpayer funds (financial aid) and should be required to operate within the confines of the USC.
But there is no such legal requirement and it can be as stupidly unfair as it wants. Students can choose to attend or not, depending on their individual proclivities.
Government agencies cannot discriminate. If the university decides that political expression and student activities are central enough to its mission to receive government grants, than it also must permit that expression to any group which is not contrary to that purpose.
However, Vanderbilt is a private university. It does not receive any direct payments from the government, except, of course, there may be certain programs which receive certain grants. Financial aid is paid to the student, to spend how they see fit within the parameters of the grant or loan; it’s no more “government-subsidized” than any grocery store which accepts food stamps.