I wonder what would happen if an instructor handed out Christian lit. construed as being pro-gay at ,say, Liberty University??
Private Universities and Coleges do what they like.
Hence the word "private".
If you go here: http://www.gbhem.org/gbhem/colleges.html
you'll see that DePauw is a United Methodist College.
If you go to the United Methodist Book of Discipline (Rulebook) you'll find the statement that "homosexuality is incompatible with Christian teaching." http://www.christianitytoday.com/ct/2004/118/12.0.html
You have the really odd situation of an instructor being suspended for advocating what the college is bound to uphold.
Private college or no, that is weird, and probably not chargeable.