Are colleges just businesses?

In class this week we watched a video that played out a setting for a panel full of professors, students, supreme court justices, university presidents, and journalists. The setting was at a made-up school, where a student started a group that believed that white men were the superior race over women, blacks, etc. They posted ads in the school news paper for their group and held a meeting in the schools social hall. Throughout the video more and more facts would be added to the list, and then the panel would discuss and decide what they would do and how they would handle the situation. From my view, there were different groups of people on the panel: the students wanted the situation to be handled immediately and wanted to shut down the group. The university president didn't want to do anything and wanted to let them proceed with their racist acts and their group gatherings. The justices and journalists simply tried to follow the law am much as possible, even if they wouldn't have wanted to. If this were a real situation and the students on the panel went with their plan, I believe they would cause a lot of "drama" on their campus and it would end up with a lawsuit against the university for restricting their rights. If the university president had his way, the university would've been a mess and fights would eventually break out between students. The group would continue to do more racist acts that could increase the risk of the students. More and more minority students would feel uncomfortable and unsafe. This video taught me that as students, what we see as wrong we want gone immediately, and university administrators will do what ever it takes to stay out of a lawsuit and from losing money... After thinking more and more about this, I don't know how I feel about giving a university money.