Status: urban legends
The Auburn Plainsman (student paper of Auburn University) has a short article
about campus urban legends. The ones they list are:
Endowment from old lady bans sorority houses:
This UL seems to exist on every college campus that doesn't have sorority houses. It states that some rich old woman left a large sum of money to the college on the condition that they ban sorority houses, because she considered them to be brothels. The more likely reality, among those schools that have sororities but no sorority houses, is that women used to be required to live on campus. Once that rule was lifted, it was cheaper for sorority members to live on campus in dorms, so the houses were never built.
If you get hit by a campus bus the school will give you free tuition:
Unlikely, but if you're lucky, maybe an insurance payout would cover the cost of tuition.
Students whose roommates commit suicide receive automatic straight A’s:
A guy in my college class committed suicide. His roommate didn't get automatic straight A's. I don't think anyone ever has.
"Beer before liquor, never sicker. Liquor before beer, in the clear":
Repeated at every campus party, though it has no basis in fact. The corollary to this UL is that if you sip beer through a straw, you'll get drunk quicker. This one I'm not sure about.
And a few that they left out:
The Sinking library:
every campus has a library that's supposedly sinking, because the engineer who designed it forgot to include the weight of the books.
The ten-minute rule:
If the professor hasn't shown up in the classroom within ten minutes of the start of the class, everyone gets to leave. I don't think this is official policy anywhere.