Neither the university, located in Lawrenceville, N.J., nor DeVercelly’s family disclosed financial terms.
The university agreed to ban social events that involve alcohol in dorms and on-campus fraternity and sorority houses, strengthen sanctions for alcohol violations and to tell parents about incidents.
Other changes already in practice included imposing stiffer sanctions for hazing, putting live-in directors in Greek houses and posting information about fraternity misconduct on a Web site.
The university will also encourage students to get help for peers who have medical problems due to alcohol use without fear of repercussions.
Garden State lawmakers also took on binge drinking by holding special hearings about alcohol on campus.