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With one painful exception that she still thinks about today, Marisol Schowengerdt enjoyed her classes at Cal State East Bay.

She enrolled in 2014 at age 41, older than most students, but no one gave her a hard time. The university’s Hayward campus was an inviting, diverse place, as East Bay’s marketing stresses: 86% of undergraduates are non-white, and many are the first in their families to attend college. Even at the business school, where a stock ticker flashed market prices as students arrived to class, officials emphasized social justice.

“The ‘American Dream’ is the ideal that everyone living in the U.S. should have an equal opportunity to achieve success and prosperity,” reads a recent mission statement by East Bay’s College of Business and Economics. “We make the Dream possible for an exceptionally diverse student population.”

Schowengerdt is the daughter of an immigrant cherry farmer, a man born in Mexico who came to the U.S. in the mid-’60s and raised seven children. She had spent her 20s and 30s building a successful career in California real estate and finance. But she lacked a...