I'm a recent graduate and work at my Alma mater, a large semi-private University.
The bar was extremely low, especially at the business school. I was perplexed after reading people's discussion board posts or edit group work. Many students had serious trouble writing coherently or using proper grammar. Math classes were even more ridiculous.
Around sophomore year I gave up on school work in favor of software development and still managed to graduate with a 3.2 GPA.
I'm looking for a new job in part because I disagree with their decision to seriously ramp up marketing and recruitment. IMO if a university can't stand on their faculty / programs / research they aren't really worth attending.