I went to univ. in the USA. My father paid most of my term bills, and not once asked me to talk about how school was going. I screwed up my first semester, realized I was wasting a bunch of money, and straightened myself out. My state university never contacted them even though I was clearly on the path of failing. HUGE life lesson, maybe one I'd avoid if I had a parent that was more involved with my schooling, but I certainly learned a lot about why it's important to apply yourself.

So, at least in the 2000s, it wasn't established at my particular State University to contact parents.