system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: How are colleges and universities allowed to handle drug cases without getting the police involved?

I go to college in the US and whenever someone is caught with illegal substances such as marijuana/LSD, the college handles the issue themselves without getting the police involved. How do they have the right to do so?
gpt
They have the right to confiscate items due to contract.  Under contract, you agreed to abide by the college rules for being there.  They don't have any right to do anything with the criminal justice system, only their own rules that you sign that you agree to.  You gave them the right.

Colleges have a financial interest in keeping crime quiet and handling crimes in-house where they can.  If a crime that happens on a campus gets reported to police, then that becomes part of the DOJ statistics for that college, which can affect how many customers want to pay them.