That's a very good plan, yarnball! Exactly the right kind of marketing. You just have to be careful to NOT use the university symbols in order to avoid trademark/copyright infringement.
Someone else mentioned hospital gift shops for baby quilts - that's a good plan if you have an "in" at your local hospital.
You can pair up with a friend or just ask another store to carry your product. Some local friends have a produce market in the summer, and she has offered to sell quilts for me with no markup, just because it's good business for her to have more products to offer passing customers. I haven't figured out a good way to do it, though - she is on a busy intersection and it's so dusty... I don't know how we could display the quilts and protect them from dirt. They just don't look the same under plastic!