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private schools can do pretty much anything they want in terms of recognizing organizations and prohibiting free speech/association. normally, they will set some sort of process in place for what can and can't be recognized and they have to follow those procedures (of course they can change them at any time as well). some private schools hold freedom of association/speech on high esteem and don't block it much, if at all. some are totally opposite and go the extreme of prohibiting it.
it does not matter if the students receive federal aid-it only matters if the university itself receives federal aid. Even then, I believe there are some loop holes-ie: if a private university receives federal money for a certain thing or a certain percentage, they are still exempt from upholding those freedoms. i can't be totally certain on that; i just remember a conversation a few years ago about it and that's about all i remember.
public schools can place restrictions on new organizations for valid reasons. As already mentioned, some do it because the existing chapters are not doing well (although a new chapter can actually re-energize interest in Greek life all together and not "take members away" from current chapters-they have not joined you yet, so what makes you think they will want to next semester?)
it can also be restricted because the university may not have the resources to administer more organizations. Gphiangel was (probably still is) in that situation because of many, many Greeks starting within a short time frame. With a limited staff and resources, it can be difficult for the university to provide a constant level of support to the organizations.
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A lifetime of sisterhood flowing with love
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