The Wordsmith's Forge

Some colleges have done that. However, it's usually viewed as not being nearly enough punishment if the crime was serious, which this was because of the permanent health damage to some victims. Another issue is that colleges have limited ability to compel housing -- usually they can only do it for freshmen. That means you're netting only students least likely to be ringleaders. The real troublemakers then move off campus where it's easier for them to make even more trouble. This is not an outcome the college wants, although it's been tried too.