If the university doesn't reinstate, they either think he did it and want to punish him beyond criminal charges or they're petrified of their own shadow (federal investigation) and are willing to piss off their own fanbase because they're afraid of getting in trouble for reinstating an officially innocent player.
There is a fine line between covering your ass and being susceptible to a lawsuit. My guess is that they run it by the general counsel, and lawyers will be making the decision. This is coming from a lawyer myself. He has already been punished by not attending summer school and being away from workouts.
