The liberal arts college was shut down 40 years before the story starts.
When Montag meets Faber, he finds that he used to be an English professor. This man worked for the last liberal arts college.
The old man admitted to being a retired English professor who had been thrown out upon the world forty years ago when the last liberal arts college shut for lack of students and patronage. (Part II, p. 33)
Notice that the government did not directly shut down the college. It was shut down because no students were going there. The people chose their own fate, slowly but surely. This is Bradbury's commentary on moden society. We are destroying ourselves.
Faber is not willing to give up studying literature just because it is outlawed. He stays with his books, because to him they are what’s real, not the television. He refuses to give in to the artificiality of letting others think for you.