My wife is doing her MBA at a state university, and they have a requirement that she purchases health insurance from a specific provider (which has a pricing agreement with the university, but that is still very expensive). We have been able to find insurance from other providers at a much lower cost.

This restriction does not apply to local students: they can choose whatever health insurance provider they want. Can the university legally impose this on us, or are they just trying to take advantage of us being foreign? Is there anything we can do?