Yes, Penn State has a process in place to treat all waste water produced on all campuses. The University Park campus has its own waste water treatment plant. which provides service to the UP campus and a portion of the State College Borough. The plant has a liquid treatment train, which uses grit removal, coarse screening, primary settling tanks, a trickling filter, and an activated sludge process to treat liquid waste. The plant also has a solid treatment train that uses anaerobic digestion system to treat solid waste. A unique aspect of the Penn State WWTP is that instead of discharging treated effluent to a river or stream, which is common among PA water treatment plants, it instead discharges treated effluent to an agricultural land system called the “Living Filter.” Irrigation to the Living filter recharges the region’s water table by about 475 million gallons per year, and is believed to be the reason why local streams and rivers are in better conditions than the past 100 years. Read more about the PSU WWTP here.
Other campuses in the Penn State system are connected to local municipal waste water treatment systems.