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It's such a strange contradictory place. You pride yourself in freedom of speech but are so puritanical you refer to using the toilet as 'using the restrooms' and 'taking a comfort break'. Everyone knows you're going in there to crimp one off, not to have a comfortable rest in a designated room.
The fraternity and sorority thing at universities is really odd too. I don't really know what they're for aside from providing a dedicated environment for abuse via the deceptively amiable name of 'hazing'.
And referring to all your sports competitions as World Championships when the only teams that play are American. Bit cringey. I mean, you probably would win if there was an actual international basketball or baseball or american football competition, but at least the World Champion thing would actually mean something then.
Fraternities are historical I think. At least here in Germany they are.
They pay the costs of going to college (in Germany it's already free, so they simply provide cheap housing) and provide connections to older students and graduates. In turn you are expected to stay as part of the community once you have a job and pay a membership fee that will be used to provide that cheap housing I mentioned.
It made sense back when "not immediately working" once you finished school was really expensive. Not only because of costs, but because of lost wages as well.
Now that the state takes care of this they are losing significance.
In the US fraternities and sororities are not usually financial assistance organizations as you're describing. The main focus is just as a social organization. A quick and easy way to get 50 friends to hang out with. They also do sometimes provide connections or help with studying.