University network regulations usually involves the student registering the MAC address of their computer to their school's network. This way the school can track student activity (such as illegal downloading, etc.), and also monitor network usage. Most universities limit how much a student can upload/download per week, month, etc. to control bandwidth usage. The limit ensures that there is always enough bandwidth for everyone to share. Dorm users account for approximately 15% of the computer population at most universities. That 15% is responsible for about 50% of the school's total traffic, even with the bandwidth limits in place. If there were no limits, not only would the university have no bandwidth for anything else, but dorm connections would also slow to a crawl.
For example a typical bandwidth limit would be 4GB down / 2MB up per week. If the student were to go over their bandwidth, they usually have their connection turned off for a few days. University IT departments don't support routers because they are not responsible for multiple computers/users on one network line. So lets say you have a wireless network setup on your dorm line and other people decide to hop on and use it, they in turn use up your weekly bandwidth.
Also, I have seen many students mess up the network for an entire floor because they install their routers backwards and start assigning IP addresses to the entire floor and conflicting with university switches.
