Although this is generally frowned upon, my campus does this too. But from what it sounds like, not to the extent as OP's campus.
For example, let's say Katie is an ABC and get's a daughter, Ashley. (Yep, daughter/son, mom/dad is what is generally used at U of I, although I know it's generally discouraged.) Katie asks her close guy friend, Mike, who is a YZ, to be her pledge husband (if someone is in a relationship, they usually ask their significant other). Therefore, Mike is Ashley's dad.
And that's pretty much the extend of it. The family will probably go out together a few times, but that's about it. Also, the family trees don't get too much larger. So, if Ashley get's a daughter, Julie, Julie really doesn't consider Mike as her "Grandpa". Likewise, if Mike get's a son, he's not really considered Ashley's brother....so you really don't get the "big families" with connections to multiple other fraternities and sororities that it sounds like OP has on her campus.
While it is a tradition, it's really not anything too serious. Also, I knew LOTS of sorority members and fraternity members who chose not to have a pledge husband/wife.
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