I'm not condemning anyone--I'm judging the curriculum and character of the college. I would not send my child there because I want him to develop up in a Christian enviornment. The standards of morality at Penn State are low!
Standards of morality are determined on an individual basis, same as in the US as a whole. This tiny minority obviously is immoral, but one can hardly claim that the other 44,900 students hold the same moral beliefs. People at PSU range from the very liberal to very conservative, very religious to atheist, etc. Just like anywhere else.
If you feel a Christian university/college is the best environment for your child, that's great! But keep in mind there are plenty of people at every university that are moral - your child will do best to understand his/her beliefs and live by them regardless of the surrounding environment.