I understand that Java is verbose and does not have the same "instant" feedback loop that a language with a fully supported REPL has. But I do not agree with the assertion that Lisp would be a good substitute for Java as the core instruction language in a University course. If people are having trouble getting their head around Java, I think they would struggle with Lisp. Java, in it's simplest form can be written in a very imperative manner. Most people think sequentially, and if you are getting started with programming, writing a simple little program in Java, IMO, is easier than something like Lisp.
I am not saying Java is better, just that it has less cognitive overhead than Lisp.
I studied both Java and Haskell at University and found it much easier to get going with Java than with Haskell (I hacked lots of QBasic - I am getting on a bit - when I was a kid). Actually, I think a language like Ruby or Python would be much better suited for an undergraduate / dual major than Lisp or Java!