Not allowing students to insult, bully or terrorize other students due to their skin colour doesn't seem to be an "official ideology". And, anyways, in Europe, that wouldn't be the question, the question would be "Should prosecutor file charges for heinous speech against those students?".
Would depend on the country in question - very different laws.
The US focus on single words is not that common in European countries. In most places you do not get prosecuted for using a single word, but for making racist/hateful/highly derogatory statements about particular groups. "I do not like/want to associate with X group" is not criminalized.
The status of the n-word in the US as the ultimate expression of racism is rather unique. The sheer fact the saying or writing the word is in itself a taboo no matter the context is special.
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Not a fan of using classes in African-American culture and history as a punishment. Academic education should not be a punishment. I also highly doubt the frat boys dislike of blacks is a result of ignorance about black history and culture.
