But a bigger part of it is that the University must provide for oversight so that the actual tasks assigned to the students is relevant to their academic goals, and that the complexity of the tasks increases progresively in order to present the students with renewed challenges according to their growing skillset.
Without this formal oversight, the whole thing could easily degenerate in a shady personal business where the school's officials "rent" their pupil's slave labor to the highest bidder.
What about getting - gasps, the horror - and actual job as a data entry clerk? You know... something that pays you money instead of making the dean richer with your efforts?
Now go put your nose down on those damned spreadsheets. Copy from column A to column Q - no, no macros, thankyouverymuch - but convert everything to UPPERCASE, and fix typos please, unless that was not a typo, in which case don't.
And remember, the Dean already cashed the check I sent him, so you better hurry up. I want no less than 100 rows per hour. Otherwise you flunk the semester, and while you don't pay tution your parents are going to get tired of having to support your lame ass if you do not start to bring a wage home one of this years.
Is that "practical" enough for you?