The University of New Brunswick is investigating allegations that a law student has spread hate literature online, according to a report by the CBC.
The only question the university should be asking is if the student used university resources (internet access) to post the materials.
What a student does off-campus, no matter how reprehensible, should have no affect on academic standing due to action by the university. (A student who is imprisoned for a crime would clearly face difficulty maintaining academic standing if required to attend classes on campus.)