This is going to be interesting.
If it's just misuse of school funds (like our own textbook problem from 2007), it might be technically illegal, but is more an NCAA / school issue.
If it's no-foolin' credit card fraud, and it extends to multiple individuals, that's defrauding a federally-insured financial institution, and maybe conspiracy to do that, on top of the act itself.
It's up to the US Attorney to decide whether to prosecute, and that's usually a function of the dollars involved, though profile of the case does sometimes figure in.
So depending, depending, this could range from no effective legal problem, to no-kidding felony charges, with the possibility of life-altering prison time.
Here's what I don't know: what's a typical major university's policy on such for students that aren't on scholarship, and just part of the general student body?
In other words, what assurances do you have that your son or daughter won't be sharing a classroom with a classmate under indictment for a felony? Does that change if the indictment is for a violent offense?
I don't know the answers, but I am deadly curious.