I actually began to wonder about this:
Te'o is graduating. He's been the face of ND, but he's done now. They don't have to stand by him like this. If he were lying, it'd probably be better for them to tell the absolute truth. It makes me think there are lies to the press (about "meeting" his girlfriend...), but either Te'o is lying to ND very convincingly, or there's truth to this story about being a victim.