In that case, just set up a router level VPN. The university probably doesn’t give a shit. Which is why the help desk IT kid said it’s fine, probably.
It’s the 3rd party ISP just being greedy. The ISP may not even care as long as you’re not running an insane amount of traffic through it. Often this type of stuff is added to TOSs to allow them the option, if you’re being a bad actor.