Ivy is right...if your school does not take federal money, basically they own your butt if you choose to go there. Grove City here in PA is another example. But schools who take NO federal monies are very few and far between.
Here is the bill that protects students' rights to associate.
http://dke.org/conf.html
Oh, and as far as the phone tapping, etc, whether it's legal or not, that is disgusting, and I would have no respect for a school that did that, nor would I give them any more of my money.