Just remember that the reason you are making items from the college fabric is to attract a special buyer. You are infringing on the logo which is copyrighted or trademarked. You are hoping to commercially benefit from someone else's copyright. Personal use does not mean making and selling. Personal use means making yourself a tote bag to take your water bottles to the ball game. Get an opinion from a copyright attorney before you buy a lot of fabric and make a lot of bags.